Seattle, Washington – U.S. prosecutors are pushing for stricter bond conditions for Changpeng Zhao, the founder of Binance, as he awaits his sentencing in April for violating federal anti-money laundering laws. Zhao pleaded guilty to the charges in late November and stepped down from his role as CEO of Binance at the same time.
The proposed bond conditions would require Zhao to provide three days’ notice before traveling within the country, surrender his Canadian passport, and seek court approval for any changes in residence. The prosecutors argue that Zhao’s immense wealth and lack of strong ties to the U.S. increase the risk of him fleeing the country.
Zhao, a Canadian national, is currently on a $175 million personal recognizance bond in the U.S. His legal team highlights his willingness to take responsibility for his actions, as evidenced by his agreement to pay $150 million to the U.S. Commodity Futures Trading Commission.
In a separate agreement, Binance agreed to pay over $4.3 billion to settle multiple federal charges. The Department of Justice described it as one of the largest corporate penalties in the history of the United States. Prosecutors are contemplating seeking a sentence that exceeds the federal guidelines suggesting up to 18 months in prison for Zhao.
Despite Zhao’s request to travel to the United Arab Emirates for personal reasons, the court denied the request in late December. He had offered to pledge all his equity in Binance US, valued at $4.5 billion, as a security measure against flight risk. The court deemed the proposal insufficient and maintained the travel restrictions.