A U.S. district court has issued a strict ruling against Changpeng Zhao, the founder of Binance, one of the world’s largest cryptocurrency exchanges.
Honourable Richard A. Jones, the U.S. District Judge presiding over the case, has tightened the bond conditions for Zhao, compelling him to surrender his Canadian passport and adhere to stringent travel restrictions within the country.
As ordered by the court, Zhao must surrender both his current and expired passports to a designated individual selected by his legal team. This appointed custodian will accompany Zhao on any travels requiring a passport, ensuring full adherence to the court’s orders and promptly reporting his whereabouts to authorities.
Binance has also come under radar in Nigeria, where the government has alleged that the cryptocurrency exchange has played a role in exacerbating the financial crisis, among other allegations. The Central Bank of Nigeria (CBN) also alleged that approximately $26 billion in untraceable funds have left the country over the past four years via Binance Nigeria.
In November 2023, Zhao pleaded guilty to criminal charges and violations of the Bank Secrecy Act, leading to his agreement to pay a substantial fine and step down from his role as CEO of Binance.
Released on bail amounting to $175 million, this arrangement formed part of a $4.3 billion settlement with the Department of Justice, marking the culmination of extensive investigations into the activities of the world’s largest cryptocurrency exchange. Judge Jones previously prohibited Zhao from leaving the United States pending a verdict in his case.
Originally set for March, Zhao’s sentencing has been rescheduled to April 30, with the businessman facing a potential sentence of up to 18 months in prison for pleading guilty to breaching anti-money laundering laws in the U.S.
