Zhao had asked the court for consent to travel while out on bond.
The DOJ prosecutors were concerned about Zhao’s potential to flee.
U.S. District Judge Richard A. Jones dismissed Binance founder Changpeng Zhao’s (CZ) request for foreign travel on Friday, dealing him yet another setback. Before pleading guilty in November to breaking US law, Zhao had asked the court for consent to travel while out on bond. This was the second time the court had turned down his request.
The Seattle court placed the specifics of Zhao’s planned itinerary and destination under seal to protect their confidentiality.
Potential to Flee Concerns
Earlier, a magistrate court had granted Zhao permission to take a brief trip to the UAE; now, this judge has refused to give him permission to leave. Prior to Zhao’s planned sentence in February, it was subsequently withdrawn.
The DOJ prosecutors were concerned about Zhao’s potential to flee, according to the report. The fact that he intends to fly to a country without an extradition treaty and has substantial assets makes this situation much more dire.
To allay these fears, Zhao went so far as to issue a $175 million bond, with $15 million held in escrow. Nevertheless, Zhao’s predicament seems to be becoming more serious. Zhao may be subject to prison time, according to CFTC Chairman Rostin Behnam, who made the comment in a recent interview.
A mountain of legal issues has been piling up for Zhao with the authorities. The allegations, which included breaking anti-money laundering rules, resulted in CZ resigning from his positions as CEO of Binance and chairman of the Binance.US board this year.
Despite the current settlement with the U.S. authorities, Binance CEO Richard Teng sent a strong signal on Thursday by announcing that the exchange’s user base climbed by 30% in 2023.