In a recent development within the US judicial system, the Department of Justice (DOJ) has moved to establish a protective order in the legal proceedings involving Changpeng Zhao, the ex-CEO of cryptocurrency exchange Binance. The DOJ’s proposal for the protective order, aimed to maintain the confidentiality of sensitive data, comes amidst the delay of Zhao’s criminal sentence, which is now postponed to late April. Zhao faces the possibility of imprisonment due to accusations of contravening anti-money laundering legislation.
DOJ Pushes for Information Security
The DOJ has applied for a protective order to be placed on specific discovery materials, which they consider sensitive, such as witness testimonies, financial documents from third parties, and internal business records. The order, if granted, would limit access to this information to the defense team and Zhao himself. Both Zhao and his defense lawyers have shown no opposition to this request.
The request also includes measures to secure the anonymity of witnesses whose identities could be seen as delicate, mirroring recent judicial actions to conceal similar information. The DOJ’s cautious approach in handling the case reflects their commitment to protecting the privacy of those entwined in the lawsuit.
Risk of Heavy Sentencing Looms for Zhao
Zhao, at risk of a severe sentence that could span two decades, is looking at a suggested 18-month incarceration based on his alleged breach of AML regulations. Currently restricted from returning to his UAE residence due to flight risk concerns, Zhao remains on bail, set at $175 million, until his rescheduled sentencing at the end of April. Prior to these events, Zhao stepped down from his leadership role at Binance and consented to pay a $50 million penalty, while Binance was levied with a substantial $4.3 billion fine.