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by Mike Caswell

Changpeng Zhao, a Canadian awaiting sentencing in the United States for charges stemming from the Binance cryptocurrency exchange, has agreed to surrender his passport. Prosecutors say that Mr. Zhao represents a flight risk, and they have been seeking a court order that would require him to hand over his passport. Such an order would be in line with prior rulings that have directed Mr. Zhao to remain in the United States until his sentencing, they contend.

The passport issue comes as part of a case in which federal prosecutors in Seattle cited Mr. Zhao for violations of the Bank Secrecy Act. They claim that he ran Binance, the world's largest cryptocurrency exchange, as it facilitated illegal transfers of money in and out of the United States. In particular, it allowed $898-million in trades between users in the U.S. and Iran, the government said. (All figures are in U.S. dollars.)

Mr. Zhao pleaded guilty on Nov. 21, 2023, as part of an agreement that will see Binance pay $4.3-billion. Since then, the conditions of his release have been the subject of much lawyerly back and forth. Initially, a judge released Mr. Zhao on a $175-million appearance bond, secured by $15-million in cash. Mr. Zhao sought permission to leave the country and return for sentencing, but a judge denied that request on Dec. 7, 2023, after prosecutors said that he represented a flight risk. Mr. Zhao sought permission to leave again on Jan. 24, 2024, with the judge denying that request as well.

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