Before Sentencing, Prosecutors want Binance’s CZ kept Under Stricter Control.
Before billionaire Binance founder Changpeng “CZ” Zhao was convicted for violating a Federal anti-money laundering statute, U.S. prosecutors attempted to strengthen the bail requirements.
Zhao would have to give up his Canadian passport and give the authorities at least three days’ notice before leaving the nation under the terms of the new bond.
As billionaire Binance founder Changpeng “CZ” Zhao awaits his April sentencing for violating Federal anti-money laundering legislation, court documents reveal that U.S. prosecutors sought a judge to strengthen Zhao’s bond requirements on Friday.
In late November, Zhao entered a guilty plea to a charge of violating the Bank Secrecy Act by failing to maintain an effective anti-money laundering program. Simultaneously, Zhao announced his resignation as CEO of Binance.
Zhao would have to give pretrial services and prosecutors at least three days’ notice before leaving the nation under the terms of the proposed bail so that they could voice any concerns.
Zhao would also be required to give up his existing Canadian passport and be prohibited from obtaining one without the court’s approval under the terms of the new bail. It would also be against the law for him to move without permission.
As per the document, the idea was met with opposition by Zhao’s attorneys. CNBC’s request for comment was not immediately answered by Zhao’s counsel.
In mid-December, Judge Richard Jones banned Zhao from leaving the country, concluding that Zhao’s “enormous wealth” and lack of links to the United States made it likely that he would escape if permitted to go back to his residence in the United Arab Emirates.
Zhao’s movement should be further restricted to the western district of Washington and the area where he presently resides, according to a recommendation made by pretrial services officers, according to the prosecutors’ most recent petition in U.S. District Court in Seattle.
Additionally, Pretrial Services suggested “a location-monitoring condition,” according to a footnote in the petition. The judge is not specifically asked to impose such a requirement in the filing.
Zhao, a citizen of Canada, is free under a $175 million personal recognizance bail in the United States. As part of his agreement with the government, he is paying a personal penalty of $150 million to the U.S. Commodity Futures Trading Commission, according to his attorneys, who have maintained that he has accepted responsibility for his acts.
Zhao’s guilty plea was made public by the Department of Justice concurrently with Binance’s commitment to pay more than $4.3 billion to settle many criminal offences. It was referred to as “one of the largest corporate penalties in U.S. history” at the time by Attorney General Merrick Garland.
According to federal sentencing guidelines, Zhao may spend a maximum of 18 months behind bars. It is said that prosecutors have thought about requesting a more severe punishment.
Zhao requested to return to the United Arab Emirates for a maximum of four weeks in order to care for a loved one who was about to have surgery, according to a letter dated December 22 that was made public with redactions in late January.
The letter revealed that Zhao made a promise to guarantee all of his shares in Binance US to allay worries about the possibility of his flight. According to Zhao’s attorneys, the equity had a value of $4.5 billion at the time of the business’s most recent financing round, which took place two years prior.
