Changpeng Zhao, the former CEO of Binance, recently attempted a significant legal maneuver in a bid to travel temporarily to the United Arab Emirates. This development has come to light following the unsealing of a court filing.
The court filing, dated January 24, revealed a letter from Zhao’s lawyers originally penned on December 22. This letter, which was previously sealed, showed Zhao offering his equity stake in Binance.US as security. His stake, valued at $4.5 billion based on a funding round two years ago, was proposed to guarantee his return to the United States after traveling to the UAE.
Zhao’s request to travel was motivated by personal reasons. He intended to visit the UAE for up to four weeks in early January to see a friend or family member undergoing surgery and staying in a hospital. However, federal prosecutors did not consent to this request.
Judge Richard Jones, overseeing the case, denied Zhao’s travel request during a closed-door hearing on December 29. The judge’s decision was influenced by concerns regarding Zhao’s potential flight risk due to his “enormous wealth and property abroad.”
Changpeng Zhao pleaded guilty to money laundering charges on November 21 and is currently on a $175 million bond in the United States. Facing up to 18 months in prison, he has agreed not to appeal any sentence of that duration or less. Zhao’s sentencing is scheduled for February 23.
Parts of the recently unsealed letter remain redacted, including sensitive details about the person undergoing surgery, the nature of the surgery, and other personal information.
As per the conditions of his bond, Zhao has been restricted from traveling outside the U.S. His current location within the country is undisclosed. Notably, Zhao has been largely inactive on public platforms, with his last known public communication dated December 6, 2023.
Zhao resigned from his position as Binance’s CEO in November 2022. This resignation was part of a settlement with U.S. regulators, where he admitted to operating an unlicensed money-transmitting business and violating the Bank Secrecy Act. The settlement was valued at $4.3 billion.
Changpeng Zhao’s legal challenges continue to unfold, with the recent court developments shedding light on his efforts to manage personal and legal obligations amidst ongoing proceedings. The situation highlights the complexities and consequences of regulatory and legal issues in the cryptocurrency industry.
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