Recent court documents revealed that a judge rejected the request of Changpeng Zhao, former CEO of Binance, to travel to the United Arab Emirates, even though he offered his multi-billion dollar share in #Binance as collateral.
Known as CZ, Changpeng Zhao tried to pledge his several billion dollars worth of stake in Binance.US as a guarantee for his temporary return to the United Arab Emirates. This move was disclosed in newly declassified court documents.
A previously sealed letter dated December 22nd showed that Zhao offered his stake in Binance.US, estimated to be worth $4.5 billion based on a two-year funding round, as collateral. Zhao intended to travel to the UAE for four weeks in early January to visit a friend or a family member undergoing surgery, but federal prosecutors disagreed with his request.
Judge Denied CZ's Request
Court records revealed that Judge Richard Jones denied CZ's request during a closed-door session on December 29th.
CZ pleaded guilty to money laundering on November 21st and currently has bonds totaling $175 million in the USA. He faces up to 18 months in prison and has agreed not to appeal against any sentence of this length.
Some parts of the recently unsealed letter remain confidential, including information about the person undergoing surgery and the type of surgery, along with other sensitive and personal details.
Travel Ban for CZ
Judge Jones previously prohibited CZ from traveling to the UAE as part of his bail conditions, stating that his "enormous wealth and assets abroad" increased the likelihood of flight. He ordered the former Binance chief to remain in the United States until the sentencing on February 23rd. Zhao's current whereabouts in the USA are unknown, and he has been mostly inactive on social media since December 6th, 2023.
Zhao resigned from his position as CEO of Binance in November 2022 as part of a $4.3 billion settlement with U.S. regulatory authorities, admitting to operating an unlicensed money transfer business and violating the Bank Secrecy Act.
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