Binance Founder Asked to Surrender All Passports Ahead of Sentencing

The founder of the world’s largest digital asset trading platform, Binance, Changpeng Zhao, also known as CZ in the digital asset sector, has been asked to submit all his passports and “all other current and expired passports and travel documents” to his counsel. 

As reported earlier by TheCoinRise, Zhao resigned as the chief executive of Binance following a series of investigations that culminated in an agreement with the Department of Justice (DoJ). Richard Teng became the new CEO of the leading crypto exchange by market volume.

Binance Founder to Surrender Documents

The Binance founder has been asked to surrender all documents as per a February 23 filing in the United States District Court for the Western District of Washington. Additionally, US Attorney Tessa Gorman requested Magistrate Judge Brian Tsuchida approve a motion that contained certain restrictions for CZ to be out on bail.

It is important to note that Binance and its former chief executive are also facing a lawsuit from the United States Securities and Exchange Commission (SEC), and the agency claims that the two had a “blatant disregard” for American law.

3 Days of Notice for Travel

Prosecutors have asked the former Binance head to remain in the United States and also added that he should give a three-day notice in case he wants to travel outside the country until his sentencing on April 30. 

The three days have been asked so that the authorities can raise any questions regarding Zhao’s travel plans and his intentions behind leaving the country. On the other hand, Nigerian lawmakers have asked for a ban on Binance, KuCoin, and other trading platforms in the region. 

Relinquishing Documents

The US Attorney’s Office has requested Zhao relinquish his Canadian passport along with “all other current and expired passports and travel documents” to his legal team. 

It’s worth noting that Zhao also holds citizenship in the United Arab Emirates and had sought permission from the court to travel there for a family visit before his sentencing. However, the judge denied this motion.

In the filing, Gorman noted that “Zhao’s counsel objected to this motion as written” and that his lawyers might once again push for the billionaire’s exit from the country.

US Prosecutors vs. Binance

As per an earlier report, the US prosecutors presented a compelling argument in favor of imposing one of the most substantial criminal penalties in the country’s history. 

They underscored that Binance Holdings Ltd. was aware of its actions, deliberately contravening the nation’s economic sanctions laws. This, in turn, allegedly exposed the financial system to potential exploitation for personal gain.