Changpeng Zhao (CZ), the founder and former CEO of Binance, which is currently the largest centralized cryptocurrency exchange platform in the world in terms of trading volume, faced a setback in his legal proceedings as a U.S. court has again rejected his motion to travel to the United Arab Emirates while he awaits sentencing in the United States for violating banking laws.
Following a court hearing in Seattle on Friday, Judge Richard Jones of the Western District of Washington denied Zhao's motion, which asked the court for permission to travel to the UAE, with the reasons and destination of his trip filed in court under seal.
During a court hearing held in Seattle, Judge Richard Jones, presiding over the Western District of Washington, denied Zhao's motion. This is the second time that Zhao's request to leave the United States has been denied by the court.
Last Wednesday, Zhao asked the court to safeguard his child's privacy by sealing confidential information and preventing it from public exposure.
"DEFENDANT CHANGPENG ZHAO moves the Court for an order sealing Defendant's 16| Motion to Seal Submission for Permission to Travel, the Submission to Travel and the Proposed Order related to Motion to Seal Submission for Permission to Travel. The Morion, Submission Order should be scaled because they contain sensitive private medical information regarding Mr. Zhao's child," the Binance founder's legal team said in last week's court filing.
Zhao pleaded guilty to one charge of violating the Bank Secrecy Act and was released on a $175 million personal recognizance bond, with some cash on escrow and guarantors putting up 5 million worth of assets as collateral in November.
He was initially allowed by the court to return to his home in the UAE and go back to the U.S. a few weeks before his sentencing, but after the motion filed by the U.S. Department of Justice (DOJ), the judge decided to stay his ruling on Zhao's travel permission, leaving the crypto mogul stuck in the U.S.
The DOJ raised several concerns against Zhao's travel to UAE, which includes the Binance founder being a potential flight risk and being a citizen of the UAE, which does not have an extradition treaty with the U.S.
In December, a U.S. court entered an order against Binance and Zhao that would see both pay $2.7 billion and $150 million, respectively, as part of the settlement agreement with the Commodity Futures Trading Commission, ending its years-long enforcement action against the exchange and its founder.
