Binance's legal tussle with the US crypto regulatory bodies remains an unending dispute.
So far, the United States maintains that Binance, a leading crypto exchange, is guilty of several regulatory breaches. This situation eventually led to the arrest of the former Binance CEO Changpeng Zhao sometime in 2023.
In a new development, Changpeng Zhao has been ordered by the government to surrender all of his passports, active or expired.
This comes after a US court blocked the former Binance chief from traveling to the UAE despite offering massive collateral.
However, Zhao won't be barred from traveling entirely in this new situation. A third party will be involved, serving as a bridge between the former Binance CEO and the US government.
Moreover, this third party will keep the US government updated on the travel data of the embattled crypto founder.
Filing Shows Conditions to a Bond
Based on a legal filing submitted recently, several modifications and adherence to many rules will be required before CZ is granted any bond.
Details from the filing also show the United States District Judge A. Jones ordered Zhao to remain in the US for his sentencing. But this wasn't the only detail contained in the latest filing. They also want Changpeng Zhao to make reports and notify court authorities of any planned travel.
The ex-Binance CEO will also be stripped of his Canadian passport.
Although this is not a direct clampdown on his Canadian passport, he will give it up to a third-party custodian who must accompany him whenever he travels anywhere that requires identification.
In a separate clause recently filed, the former CEO of Binance has also been banned from applying for a new passport in other countries.
The court document said CZ “may not apply for or obtain a new passport or travel document from any country without the Court’s permission.”
This comes as a massive blow to the former Binance executive. In fact, more details show that the third party involved in this deal can only return his passports to him with the approval and guidelines of the US court.
CZ's Argument to the New Development
Last year was a complex year for Binance as they faced many regulatory issues with the United States government.
Their former CEO admitted to breaking several regulatory laws within the same period.
Apparently, he pleaded guilty to breaking the Bank Secrecy Act, failing to register Binance as a money services business.
Furthermore, the biggest crypto exchange had no comprehensive anti-money laundering program.
With his court appearance scheduled for April 30th, CZ comes up with new arguments for the recent modifications from the US government.
According to him, the government censoring and having control of his travel schedule was entirely unnecessary.
Furthermore, he said the details regarding his travel have not been an issue.
The US government has responded to the argument that the bond modifications made for the former Binance CEO, who was arrested last year, were unnecessary.
According to the government, the CEO's travel schedule may pose a problem in the future, and the bond modifications were made as a precaution against this potential issue.