US Court Bans Binance Founder from Leaving the Country

A U.S. court has issued a travel ban against Zhao Changpeng, the founder of Binance, the world's largest cryptocurrency exchange, who is accused of money laundering.

On the 25th (local time), according to cryptocurrency-focused media CoinDesk and others, Judge Richard Jones of the U.S. District Court for the Western District of Washington stated that further review is needed to determine whether Zhao Changpeng's travel should be restricted, and that he must remain in the U.S. until a final decision is made. Judge Jones did not specify when the final decision on the travel ban would be made.

Previously, a magistrate judge released Zhao Changpeng on the condition that he post $175 million (approximately 228.6 billion KRW) bail ahead of his sentencing scheduled for February 23 next year, and allowed him to visit his family in the United Arab Emirates.

However, the U.S. Department of Justice requested the federal court to prohibit Zhao from leaving the U.S., stating that there is no extradition treaty between the UAE and the U.S., and that they cannot secure his custody if he does not return to the U.S.

[Image source=Reuters Yonhap News]

In response, Zhao Changpeng's side argued that he demonstrated no flight risk by voluntarily entering the U.S. after being in the UAE, and appealed to be allowed to visit his family there, noting that he had his third child in the UAE a few months ago.

Binance, the world's largest cryptocurrency exchange, has been under investigation by U.S. authorities since around 2020 for allegations including money laundering, violations of financial sanctions, and fraud.

As pressure on Binance increased in the U.S., Zhao Changpeng, who was CEO, appeared in court on the 21st and pleaded guilty to charges including violations of the Bank Secrecy Act (BSA) and the International Emergency Economic Powers Act (IEEPA), which regulate anti-money laundering.

He also agreed with the U.S. government to pay a fine of $4.3 billion (approximately 5.5 trillion KRW) and resigned from his position as CEO of Binance.

Among his charges were acts of facilitating transactions for users in sanctioned regions such as North Korea, Iran, Syria, and the Crimean Peninsula of Ukraine. Regarding North Korea, the U.S. government stated that he facilitated a total of 80 cryptocurrency transactions worth approximately $4.37 million (about 560 million KRW), violating sanctions against North Korea.

He agreed not to appeal up to an 18-month prison sentence as part of this guilty plea agreement. Originally from Jiangsu Province, China, he founded Binance in China in 2017, later establishing major bases in Singapore and other locations, but the official headquarters address on record is reportedly in the Cayman Islands, a tax haven.

This content was produced with the assistance of AI translation services.