With his sentence hearing only a few months away, Changpeng ‘CZ’ Zhao who resigned as Binance CEO has once again been barred from leaving the United States.
Judge Richard Jones of the U.S. District Court for the Western District of Washington in Seattle denied Zhao’s “request for permission to travel” for the second time, per a sealed order.
Binance CEO Requested Order to Seal Motion of Travel
This comes after Zhao sought court intervention, requesting an order to seal a motion related to permission to travel. Markedly, this particular motion is connected to a desire for confidentiality or limited public access to the details surrounding Zhao’s travel permissions. The request to seal the motion is because it contains certain sensitive medical information about his child.
The judge doesn’t seem perturbed by CZ’s argument as he still maintains that the crypto giant is not allowed out of the U.S.
Binance Founder Resigns as Binance CEO
Amidst Binance’s issues with U.S. Department of Justice which involved a number of charges against the popular cryptocurrency exchange, its CEO at that time decided to step down from his position. He pleaded guilty to the violation of U.S. money laundering regulations, citing the decision as what is “the best for our community, for Binance, and myself.”
Also, he believes that his resignation will go a long way in closing the criminal investigations into the crypto exchange and securing the exchange’s continued operations.
In the long run, the Federal court accepted his guilty plea, and his hearing was scheduled for February 2024. The Binance founder had planned to return to the UAE until the time for his sentencing and he therefore requested permission to go.
DoJ Fears that CZ Poses Travel Threat
Unfortunately, the court disagreed with Zhao’s legal team and claimed the crypto entrepreneur did not pose any flight risk.
CZ’s defence team tried to convince the court that he has strong family ties in the UAE but the court was not having it. Judge Jones rejected the request on the premise that the former Binance CEO may not return to the U.S. when it’s eventually time for his hearing.
The DoJ believes that Zhao has enough wealth to buy his way through once he steps out of the U.S. There is also the issue of the “no extradition” treaty that the UAE has with the United States.