U.S. Prosecutors Seek Tightened Bond Conditions for Binance Founder Changpeng Zhao
Introduction
U.S. prosecutors have requested a judge to impose stricter bond conditions on billionaire Changpeng “CZ” Zhao, the founder of Binance. The request comes as Zhao awaits his criminal sentencing in April for violating a federal anti-money laundering law. The proposed bond conditions aim to ensure Zhao’s accountability during this period, as mentioned in court filings.
Zhao’s Plea and Resignation
Zhao pleaded guilty to the charge of failure to maintain an effective anti-money laundering program in November, resulting in his resignation as Binance’s CEO. The guilty plea raised concerns regarding Zhao’s potential risk of flight.
Prosecutors’ New Bond Conditions
The prosecutors’ latest filing suggests the following bond conditions:
- Zhao must provide prosecutors and pretrial services with at least three days’ notice before any travel within the country, allowing them to raise any potential objections.
- Zhao must surrender his current Canadian passport and seek court permission when applying for a new one.
- Zhao cannot change his place of residence without prior approval.
Zhao’s Defense
Zhao’s attorneys have expressed objections to the proposed bond conditions, but have not provided any immediate response to CNBC’s request for comment on the matter.
Judge’s Earlier Travel Restriction and New Recommendations
Judge Richard Jones previously barred Zhao from leaving the United States, citing concerns over his substantial wealth and lack of ties to the country. The prosecutors’ latest filing notes the recommendations from pretrial services officers to limit Zhao’s travel to specific districts in Washington. They have also mentioned the consideration of a location-monitoring condition, although it was not explicitly requested in the filing.
Potential Consequences
Zhao’s guilty plea and the subsequent resolution agreement by Binance have resulted in significant penalties. The U.S. Department of Justice announced that Binance will pay over $4.3 billion to settle multiple federal charges. Federal sentencing guidelines suggest that Zhao could face a prison term of up to 18 months. Prosecutors have reportedly been considering seeking a harsher sentence.
Zhao’s Travel Request Denied
Zhao had previously requested permission to travel to the United Arab Emirates for up to four weeks to attend to a family matter. He offered his equity in Binance US, valued at $4.5 billion, to assure the court of his commitment to comply with the law. However, the travel request was denied by Judge Jones.
Conclusion
As the sentencing for Changpeng Zhao approaches, U.S. prosecutors are seeking tightened bond conditions to ensure that he remains accountable to the federal anti-money laundering law that he has pleaded guilty to violating. The request for stricter conditions reflects the concern of potential flight risks. The final decision regarding the bond conditions will be up to the judge, who will consider all relevant factors.
