Prosecutors Seek Travel Restrictions for Former Binance CEO CZ

1. U.S. prosecutors seek tighter travel controls for former Binance CEO CZ until his sentencing, requiring him to stay within the continental U.S. and provide advance notice for any travel plans.

2. The government requests Changpeng Zhao to surrender his Canadian passport and all other current and expired passports, escalating legal measures ahead of the sentencing hearing on April 30.

3. CZ, who pleaded guilty to a felony count in November 2023, faces continued legal challenges.

In a recent development, the United States Attorney’s Office has filed a motion requesting additional travel restrictions for Changpeng Zhao, the former CEO of Binance. 

The request seeks approval from Magistrate Judge Brian Tsuchida to impose conditions on CZ’s travel until his sentencing hearing on April 30.

Travel Restrictions and Passport Surrender

Prosecutors have asked CZ to remain within the continental U.S. and provide three days’ notice for any travel plans, allowing the government to raise objections.

The government also requested the surrender of Zhao’s Canadian passport, as well as any other current and expired passports and travel documents in his possession. CZ’s legal team is expected to contest this motion.

Zhao, who also holds citizenship in the United Arab Emirates, had requested permission to travel to visit family before sentencing. However, the judge denied this motion, emphasizing the need for stricter travel controls.

CZ pleaded guilty in November 2023 to a felony count related to the failure to maintain an effective Anti-Money Laundering program at Binance. Despite the guilty plea, he has remained free on a $175 million bond. As part of a $4.3 billion deal between Binance and U.S. authorities, CZ stepped down as CEO, with the recent acceptance of a $1.8 billion fine and forfeiture of $2.5 billion by Judge Richard Jones.

Ethics Compromised by Greed

During the Feb. 23 hearing, Judge Jones remarked, “This really is a case where the ethics of the company were compromised by greed.” The civil case with the U.S. Securities and Exchange Commission (SEC), filed in June 2023 against CZ, Binance, is still ongoing, adding to the legal challenges faced by the entities involved.

Following CZ’s departure, Richard Teng assumed the role of CEO at Binance. In a December 2023 interview, Teng described the exchange as “totally different” compared to its business six years prior, highlighting changes in the aftermath of the legal proceedings.

The developments surrounding CZ and Binance continue to unfold, with legal battles shaping the future of one of the world’s largest cryptocurrency exchanges.