Amidst the impending sentencing of Binance founder Changpeng Zhao for violating federal anti-money laundering laws, US prosecutors have petitioned the court for enhanced bail conditions.
The move comes as Zhao awaits sentencing in April following his guilty plea in late November for failing to uphold an effective anti-money laundering program, as per court documents.
Changpeng Zhao new bail conditions
The newly proposed conditions, outlined in court filings, necessitate that Zhao provides at least a three-day notice to prosecutors and pre-trial services before any domestic travel, affording them the opportunity to raise potential objections.
Additionally, Zhao would be mandated to surrender his current Canadian passport and would be prohibited from applying for a new passport without explicit permission from the court. Furthermore, any change in his residence would require prior approval from the court.
Objections Raised by Zhao’s Legal Team
According to the lawsuit, Zhao’s legal representatives have contested the proposed bail conditions. The objections come in the wake of Judge Richard Jones’ earlier decision in mid-December, which barred Zhao from traveling outside the United States.
The judge cited Zhao’s considerable wealth and lack of ties to the US as factors that could precipitate flight if he were allowed to return to his home in the United Arab Emirates.
Prosecutors’ application for stricter measures
In the latest application submitted to the US District Court in Seattle, prosecutors highlighted recommendations from pretrial services officers advocating for further restrictions on Zhao’s movements. This would limit his travel exclusively to the western region of Washington and his current place of residence.
Notably, pretrial services also suggested a “location monitoring requirement,” although prosecutors did not explicitly request its implementation in the application.
Zhao’s current legal status
Zhao, a Canadian citizen, remains free in the United States on a $175 million personal recognizance bond. His legal team emphasized Zhao‘s acceptance of responsibility for his actions, underscoring his payment of a $150 million personal penalty to the US Commodity Futures Trading Commission as part of his agreement with the government.
The guilty plea was accompanied by Binance’s agreement to settle multiple federal charges, amounting to over $4.3 billion, as announced by the Justice Department.
Potential sentencing and prosecutors’ considerations
Federal sentencing guidelines indicate that Zhao could face a maximum of 18 months in prison. However, prosecutors are reportedly contemplating seeking a harsher sentence. Attorney General Merrick Garland previously characterized the settlement with Binance as “one of the largest corporate penalties in US history,” underscoring the significance of the case.
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