Binance Founder Requests a Court Order to Seal Travel Permission Documents

In a recent legal development, the former CEO of cryptocurrency exchange Binance, Changpeng ‘CZ’ Zhao, has sought court intervention, requesting an order to seal a motion related to permission to travel. This development comes in the wake of the prior court directive instructing CZ to stay within the United States from the time of his plea to the scheduled sentencing in February 2024.

In his pursuit for legal recourse, CZ’s request for a court order related to travel permissions adds a layer of complexity to an already closely monitored legal case. Also, the request to seal this particular motion implies a desire for confidentiality or limited public access to the details surrounding Zhao’s travel permissions.

As per the filing, CZ’s request to seal the motion is solely because it contains sensitive private medical information about his child.

CZ’s Lawyers Attempts to Convince Court

Since his sentence hearing was slated for February 2024, CZ requested to return to the United Arab Emirates (UAE). His defense team approached the U.S. District Court on the matter citing that he posed no flight risk as he would return to the U.S. when it was time for his hearing. Zhao’s lawyers also mentioned that he has strong family ties in the UAE.

The court, however, did not consent to the request, instead, the prosecutors insisted that Zhao presented a flight risk. Furthermore, they pointed to his wealth and the fact that the UAE has no extradition treaty with the United States. However, a review clause was added and the latest ruling is a product of the review.

Changpeng Zhao and Potential Jail Term

Considering the gravity of his offense, the Binance founder is likely to receive a sentence of up to 10 years in jail. Although some factors suggest that he will receive a lighter sentence. Up until the present charges from the Department of Justice (DOJ), the ex-Binance CEO had no criminal record. The DOJ’s willingness to settle is also an advantage to CZ as it suggests a potential arrangement.

The agency may decide to throw in probation for him or put him on house arrest. Noteworthy, the sentencing hearing is scheduled to happen in January 2024. Until that time, CZ is left with no other choice than to remain in the United States.

Binance CEO Quit Amidst $4.3B Settlement

CZ quit his position as Binance CEO in November after which he agreed to plead guilty to violating U.S. anti-money laundering laws. He regarded the decision to plead guilty as “the best for our community, for Binance, and myself.” This was right in the middle of his cryptocurrency exchange reaching a $4.3 billion settlement with the DOJ.

Immediately, Binance’s Global Head for Regional Markets Richard Teng was appointed as the new CEO. Notably, CZ’s guilty plea has been accepted by Judge Jones.