In the course of his protracted legal battle in the United States, Changpeng “CZ“Zhao, who was previously CEO of Binance, has suffered a serious setback. In response to Zhao’s second request to fly outside the country, a federal judge named Richard Jones of the United States District Court for the Western District of Washington in Seattle turned down to grant his request. This determination was made as part of the trials that took place prior to Zhao’s conviction.
When Judge Jones issued an earlier order on December 7, he mandated Zhao to remain in the United States. The verdict handed down on December 29 followed that order. Concerns that Zhao, who pleaded guilty to one felony count in a $4.3 billion deal between himself, Binance and U.S. authorities, could pose a flight risk are the basis for this restriction. Zhao signed the agreement himself. His sentencing is expected to take place in February and he could face a prison sentence of up to 18 months.
Because the court sealed the reasons for Zhao’s second request to travel, they have not been made public as they have been kept confidential. On the other hand, it has been reported that the motion was about medical information about Mr. Zhao’s child. Zhao is said to be the father of three children with Yi He, a former talk show personality and co-founder of Binance. These children currently live in Dubai, where Zhao also lives. It is not possible for the general public to obtain information about the specific arguments and details of Zhao’s case as the verdict is confidential.
Zhao is still free on $175 million bail despite his guilty plea; nevertheless, he is banned from traveling outside the United States following the conviction. This circumstance is somewhat similar to the problem that occurred with Alex Mashinsky, the former CEO of Celsius. Mashinsky was arrested on charges related to allegedly misleading and defrauding people, although he is now free on $40 million bail.
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