Binance’s Zhao Again Blocked From Traveling By U.S. Judge

(Bloomberg) -- Former Binance Holdings Ltd. chief executive Changpeng Zhao has been blocked again from traveling as he awaits sentencing in the US for violating banking laws.

Zhao had asked US District Judge Richard A. Jones for permission to travel while on bail, the second such request following his guilty plea in November. At a court hearing in Seattle on Friday, Jones denied Zhao’s application. The reasons for his trip, and the destination, were filed in court under seal.

The decision comes three weeks after Jones overturned a ruling allowing the billionaire to return to the United Arab Emirates ahead of his sentencing in February. Federal prosecutors had challenged the bail condition, arguing Zhao had significant assets and was returning to a country with no extradition treaty with the US. 

Zhao, who agreed to step down as Binance’s CEO as part of his deal with authorities, pointed to the fact he voluntarily traveled to the US to face the charge.

The founder of the world’s largest cryptocurrency exchange pleaded guilty to failing to maintain an effective anti-money laundering program at Binance and agreed to pay a $50 million fine, bringing years of regulatory scrutiny to a close. Binance also pleaded guilty to violating anti-money laundering and sanctions laws, agreeing to pay $4.3 billion in penalties in one of the largest corporate settlements in US history.

Read More: Ousted Binance Founder CZ’s Fortune Grew by $25 Billion in 2023

Zhao offered to post a bond of $175 million, secured by $15 million in cash held in trust, to guarantee that he’d show up at his sentencing in February. Zhao, who has a net worth of more than $37 billion, according to Bloomberg’s Billionaires Index, faces as long as 18 months in prison.

The case is US v. Zhao, 23-cr-00179, US District Court, Western District of Washington (Seattle).

(Updates with background from case)

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