In the ongoing legal battle in the Western District of Washington, former Binance CEO Changpeng Zhao faced a setback as his international travel request was denied by U.S. District Judge Richard A. Jones, as reported by Bloomberg. Previously found guilty of violating U.S. laws in November, Zhao had been released on bail and sought court permission to travel to the United Arab Emirates to be with his family, which was denied.
Zhao’s second travel request was also rejected, despite the court recording his travel plan and destination, which remained confidential. This followed a magistrate judge’s initial approval for a short trip to the UAE, later revoked in anticipation of Zhao’s sentencing hearing scheduled for February.
Prosecutors from the Department of Justice (DOJ) expressed concerns over Zhao’s risk of flight due to his considerable assets and the lack of an extradition treaty with the UAE. To alleviate these concerns, Zhao offered a $175 million bail, including $15 million in cash, but did not succeed in securing his travel.
Zhao’s legal troubles with U.S. institutions are mounting, with allegations including violations of anti-money laundering laws, potentially leading to him stepping down from his CEO position at Binance and chairmanship at Binance.US. CFTC Chairman Rostin Behnam hinted at a possible prison sentence for Zhao’s actions.
The SEC has also accused Binance and Zhao of knowingly violating U.S. laws in the ongoing case, following a $4.3 billion settlement with the DOJ. These charges point to complex legal challenges for both Zhao and Binance.
Zhao faces up to 18 months in prison depending on the case’s outcome, with the sentencing hearing in February 2024 being crucial for determining his punishment.