On April 8, 2021, the U.S. District Court for the District of Columbia denied a request to lift travel restrictions on Changpeng Zhao (CZ), the founder and CEO of the world’s largest cryptocurrency exchange, Binance. CZ had requested the court to lift the travel restrictions imposed on him by the U.S. Department of Justice (DOJ) in February 2021.

The DOJ had imposed the travel restrictions on CZ in connection with an ongoing investigation into potential violations of U.S. securities laws by Binance. The DOJ alleged that Binance had allowed U.S. customers to trade on its platform without registering with the Securities and Exchange Commission (SEC). The DOJ also alleged that Binance had failed to comply with anti-money laundering regulations.

In his request to the court, CZ argued that the travel restrictions were too broad and would prevent him from attending important business meetings and conferences. He also argued that the restrictions were unnecessary because he had already agreed to cooperate with the DOJ’s investigation.

However, the court ruled that the travel restrictions were necessary to ensure that CZ would remain in the U.S. and comply with the DOJ’s investigation. The court noted that CZ had a history of traveling frequently and that he had previously failed to comply with a subpoena issued by the SEC in 2020.

The court’s decision is a major setback for CZ and Binance. The travel restrictions will likely hamper CZ’s ability to conduct business and could have a negative impact on Binance’s operations. It remains to be seen how this decision will affect Binance’s future plans and whether CZ will be able to resolve the DOJ’s investigation without further disruption.