- Former Binance CEO has been released on bond.
- The CEO could be allowed to travel out of the U.S.
- Prosecutors insisted on reviewing some of the terms set.
Former Binance CEO and founder Changpeng “CZ” Zhao has been released from custody on a multimillion-dollar personal recognizance bond.
The development comes after CZ pleaded guilty to violating the Bank Secrecy Act and agreed to a landmark criminal settlement with the U.S. Department of Justice (DOJ) on November 21. Following the guilty plea, CZ resigned as the CEO of the world’s largest crypto exchange by trade volume.
CZ Allowed to Post Bond
In a bond document filed in Seattle federal court on November 21, CZ agreed to be released from custody under several stringent conditions pending further proceedings in the criminal case.
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Besides posting a $175 million personal recognizance bond, the terms of release required CZ to avail $15 million held in a trust account by Davis Wright Tremaine and to find two guarantors to pledge $250,000 and $100,000, respectively.
The terms of the bond bar CZ from breaking any law during the period of release.
“I must not commit a federal, state, or local crime during the period of release, I understand that if I commit a felony while on release, my sentence can be increased by a maximum of ten years.” CZ pledged.
An excerpt of the bond order.
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While the order allows CZ to leave the U.S. and return to the country 14 days prior to sentencing, federal prosecutors expressed their discomfort with this provision, hinting at a Tuesday hearing that they would appeal the condition to a more senior judge.
DOJ Lawyers Preying on CZ
As the DOJ, CZ’s lawyers, and the district judge assigned to the case iron out the traveling disagreement, the former CEO will remain in the Seattle area until November 27.
Meanwhile, the New York Times reported that federal prosecutors are “open to slapping “CZ with a longer sentence. By pleading guilty to federal charges before a trial, CZ waived his right to appeal any sentence over 18 months.
Although the DOJ didn’t mention any prison time as part of the plea deal, CZ paid a $50 million fine and awaits sentencing on February 23, 2024, at 9 a.m. Pacific Time.
Read more about the Binance-DOJ settlement and CZ’s resignation:
Here’s What Binance’s $4B Settlement and CZ’s Resignation Means
Stay updated on the SEC vs. Binance legal battle:
SEC Dismisses Binance Motion to Toss Lawsuit as “Theatrics”
