U.S. Prosecutors Push for Stricter Bond Terms for Binance Founder CZ Zhao

U.S. prosecutors, on Friday, urged a judge to enhance the bond conditions of Changpeng “CZ” Zhao, the billionaire founder of Binance, as he awaits sentencing in April for violating a federal anti-money laundering law, as per court documents.

In late November, Zhao pleaded guilty to a charge of failing to maintain an effective anti-money laundering program, a violation of the Bank Secrecy Act. Simultaneously, he resigned as Binance’s CEO.

The proposed bond would necessitate Zhao to give at least three days' notice to prosecutors and pretrial services before any domestic travel, allowing them time to raise objections, as reported by CNBC.

Additionally, the new conditions would mandate Zhao to surrender his current Canadian passport, prohibiting him from applying for a new one without court permission. Changing his place of residence would also require prior approval.

In mid-December, Judge Richard Jones restricted Zhao from traveling outside the U.S., citing concerns about his substantial wealth and lack of ties to the country, which increased the risk of flight, especially to his home in the United Arab Emirates.

The latest filing in U.S. District Court in Seattle noted recommendations from pretrial services officers to further limit Zhao’s movement, suggesting travel only to the western district of Washington and his current district of residence.

Although the filing mentioned a potential "location-monitoring condition," it did not explicitly request the judge to impose it.

Zhao, a Canadian national, remains free in the U.S. on a $175 million personal recognizance bond. His legal team emphasizes his acceptance of responsibility, citing a $150 million personal penalty to the U.S. Commodity Futures Trading Commission as part of his agreement with the government.

The guilty plea by Zhao was announced by the Department of Justice alongside Binance's agreement to pay over $4.3 billion to settle multiple federal charges. Attorney General Merrick Garland referred to it as "one of the largest corporate penalties in U.S. history."

Federal sentencing guidelines suggest a potential prison term of up to 18 months for Zhao. Prosecutors are reportedly considering seeking a more severe sentence.

In a letter to the court dated December 22, made public in late January with redactions, Zhao sought permission to return to the UAE for up to four weeks due to a family member's scheduled surgery. He offered to pledge all his equity in Binance US, valued at $4.5 billion from a recent fundraising round, as reassurance. However, the request was denied by Judge Jones on December 29.