- New bond conditions restrict Zhao’s movement, requiring him to stay in the US, inform the court before domestic trips, surrender passports to legal team.
- Class-action lawsuit revived against Binance and Zhao in the US, alleging unregistered securities sales to US investors. Appellate court overturned lower court’s dismissal.
- Binance and Zhao face ongoing legal troubles, including allegations of market manipulation in Nigeria, with executives detained and possible multi-billion dollar fines. Regulators increasingly target Binance and Zhao across jurisdictions.
Changpeng Zhao, former CEO of Binance, faces escalating legal troubles in the United States. New travel limitations and a revived lawsuit intensify scrutiny of the controversial crypto mogul.
New Bond Conditions Restrict Zhao’s Movement
On March 11th, Judge Richard A. Jones ordered modifications to Zhao’s bond terms. The new conditions require Zhao to remain in the U.S. and inform the Court before domestic trips. Additionally, Zhao must surrender his Canadian passport and any other passports to his legal team. These measures address worries that Zhao may attempt to flee the country.
Class-Action Lawsuit Revived Against Binance and Zhao
The U.S. Court of Appeals for the Second Circuit recently overturned a lower court’s dismissal of a class-action lawsuit against Binance. The suit alleges Binance sold unregistered securities to U.S. investors.
The appellate court found the plaintiff’s case timely and applicable securities laws potentially relevant. This revives legal proceedings against Zhao, Binance, and other company executives.
Ongoing Legal Troubles
The revived lawsuit and travel limitations represent only a portion of Binance and Zhao’s legal troubles. The company faces allegations of market manipulation in Nigeria, with executives detained and multi-billion dollar fines possible.
Across jurisdictions like the U.S. and Nigeria, regulators increasingly target Binance and Zhao for perceived compliance failures. The former CEO’s sentencing in April will likely not mark the end of scrutiny for Binance or its founder.
Conclusion
Intensifying legal pressure on Changpeng Zhao shows no signs of abating. As the Binance saga continues, the former CEO faces new travel restrictions and a revived lawsuit in the U.S. With sentencing ahead in April, Zhao and Binance remain firmly in the crosshairs of global regulators.
