9 months ago
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A redacted court filing has revealed that Binance’s ex-CEO Changpeng ‘CZ’ Zhao was ready to pledge his $4.5 billion stake in Binance US in order to be allowed to leave the US. CZ had asked the court to allow him to depart to the United Arab Emirates (UAE), citing medical reasons for this request.
Why CZ Was Ready To Pledge His Binance US Stake
According to the letter dated December 22, 2023, sent to Judge Richard Jones, the former Binance CEO wanted to return to the UAE so he could be present for the hospitalization and surgery of someone likely to be a relative (name not included in the redacted copy). Specifically, CZ’s lawyers had asked that their client be allowed to travel to the UAE on January 4 and stay there for up to 4 weeks.
Changpeng Zhao was willing to pledge his Binance US stake, amongst other things, to address the court’s concern about him not returning to the US. However, this wasn’t enough to convince the court, as the request was ultimately rejected. Bitcoinist had reported how Judge Jones had ordered CZ not to leave the US in a ruling he gave on December 29.
Meanwhile, another court filing suggests that the relative in question happens to be Zhao’s child. Before Judge Jones’ ruling on December 29, CZ’s lawyers had filed a motion to seal the motion relating to their client’s permission to travel. They had made this request because the motion in question contained “sensitive private medical information regarding Mr. Zhao’s child.”
How It All Went Down For Changpeng Zhao
Zhao stepped down as the CEO of the world’s largest crypto exchange, Binance, in November as part of a $4 billion settlement with the US government. This came after the Justice Department, alongside other relevant agencies, had charged him and the crypto exchange with anti-money laundering violations.
Following his plea deal, CZ’s sentencing was set for February 23, and he would have to remain in the US till then. Zhao faces up to 18 months in prison as part of the penalty for his actions, although there is also the possibility that it could be longer, as experts have suggested. In the meantime, the once-outspoken Binance ex-CEO has continued to remain under the radar as he awaits his fate.
Meanwhile, Binance, which suffered a setback following that episode, has gotten back on its feet and looks to have put those woes behind it. Bitcoinist recently reported how the crypto exchange has seen an inflow of over $4 billion since settling with the authorities.
Featured image from Reddit, chart from Tradingview.com
