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U.S. district court has imposed new bail conditions on Changpeng Zhao, the founder of cryptocurrency exchange Binance. The court has mandated Zhao, popularly known as CZ, to surrender his Canadian passport and notify authorities before traveling within the United States.
The Changes in Bail Conditions
According to court documents filed on March 11, Zhao must inform pretrial services before any interstate travel within the U.S. Additionally, he is required to surrender his current Canadian passport to a third-party custodian under the supervision of his counsel.
Furthermore, Zhao is directed to surrender all other current and expired passports to his counsel, with the authorization to return them only with court approval.
This modification in bail terms marks the second alteration issued by U.S. District Judge Richard Jones. Initially, Zhao was restricted from leaving the U.S., despite an earlier bond agreement that allowed him to travel to the United Arab Emirates.
Legal Proceedings and Sentencing
Zhao pleaded guilty in November to violating U.S. anti-money laundering regulations and faces a potential sentence of up to 18 months in prison. His sentencing, originally scheduled for March, has been postponed to April 30 for undisclosed reasons.
The guilty plea stemmed from charges related to violating the Bank Secrecy Act and failing to maintain an effective anti-money laundering program at Binance. As part of his plea deal, Zhao agreed to step down as CEO and Binance paid $4.3 billion in penalties.
While Zhao awaits his sentencing, the Justice Department is expected to seek a stringent penalty, according to former U.S. SEC employee John Reed Stark.
The decision underscores the seriousness of the charges against Zhao and the importance of adhering to legal requirements as the case unfolds.