In a major legal development, Binance founder Changpeng “CZ” Zhao faced another setback as US federal judge Richard Jones denied his request for a second time to travel abroad while awaiting sentencing on criminal charges. Friday’s decision strengthens the government’s claim that Zhao is a flight risk and prevents him from returning to the UAE, where his family resides.
Binance former CEO’s request was rejected
Judge Jones of the U.S. District Court for the Western District of Washington denied Changpeng Zhao’s request to go abroad for the second time. This decision comes after prosecutors claimed that the former Binance CEO, who was recently found guilty of violating the Bank Secrecy Act, may be trying to evade punishment. The sealed resolution did not disclose specific details about Zhao’s arguments against travel restrictions. However, it is known that his proposed reasons for the trip and the planned destination remain confidential. According to lawyers, this raises questions about the nature of travel plans.
Changpeng Zhao, who faces up to 10 years in prison for violating banking laws, had requested permission to travel while awaiting sentencing, which is scheduled to be handed down on February 23. Despite a potential maximum sentence, experts think a plea deal could limit his prison sentence to no more than 18 months, sparing him from the harsh sentences faced by other leading figures in the crypto industry.
What happened?
In late November, a federal judge in Seattle had previously ruled that Zhao would not be allowed to return to his residence in the United Arab Emirates. The upcoming sentencing, which will set out the scope of the sentence, adds further uncertainty to Zhao’s legal future. The legal saga surrounding Changpeng Zhao continues, highlighting the complexity of the travel denial case. As the crypto community watches closely, the repercussions of Zhao’s guilty finding and ongoing legal battles have consequences not only for Zhao, but also for Binance, which agreed to a $4.3 billion fine and Zhao’s resignation as part of a settlement with US authorities . While the deal alleviates regulatory concerns, it has sparked debate about its true cost and impact on the cryptocurrency exchange giant.
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