Changpeng Zhao Request To Leave US Rejected Again Amid Nearing Lawsuit –

Key Points:

• Former Binance CEO Changpeng Zhao request to travel while sentencing for violating banking laws has been further denied by US District Judge Richard A. Jones.
• Zhao previously pleaded guilty to violating the Bank Secrecy Act and faces potential imprisonment, with the court citing flight risk concerns.

According to Bloomberg, US District Judge Richard A. Jones has once again rejected former Binance CEO Changpeng Zhao’s plea to travel as he awaits judgment for violating banking laws. This marks the second denial following Zhao’s guilty plea in November.

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Former Binance CEO Changpeng Zhao Request Faces Setback Ahead of Sentencing

Zhao, also known as CZ, faced a similar denial three weeks ago when a ruling allowing him to return to the United Arab Emirates (UAE) was overturned by Judge Jones. Federal contended that Zhao, with substantial assets, poses a flight risk, especially considering the absence of an extradition treaty between the UAE and the US.

Changpeng Zhao request was made after he voluntarily traveled to the US to face charges. Zhao, who stepped down as Binance CEO as part of his deal with authorities, pleaded guilty to violating the Bank Secrecy Act. He was released on a $175 million personal recognition bond and is set for judgment in February, facing a potential 18 months in prison.

The court’s decision comes after Zhao’s acknowledgment of guilt for failing to maintain an effective anti-money laundering program at Binance. The cryptocurrency exchange itself admits guilty to violating anti-money laundering and sanctions laws, agreeing to a historic $4.3 billion in penalties. The $50 million fine imposed on Zhao, coupled with Binance’s settlement, concludes years of regulatory scrutiny.

The specifics of the Changpeng Zhao request, including the purpose and destination, were filed under seal. Judge Jones expressed concerns about Zhao being a flight risk, especially if allowed to travel to Dubai, where his family resides.

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