KEY POINTS
- Judge shot down CZ's request to travel
- CZ pledged all of his Binance.US stakes worth over $4 billion
- Binance's CZ was initially allowed by the court to leave the country and return a few weeks before his sentencing
Despite former Binance CEO Changpeng Zhao's audacious move to offer his substantial Binance.US stake as collateral, his endeavor to secure temporary travel permit to the United Arab Emirates has been thwarted as a U.S. judge unequivocally denied his request.
Unsealed this Wednesday, a court filing revealed a December 22, 2023 letter of Zhao's lawyers to Judge Richard Jones, seeking the court's permission to allow the former Binance CEO a one to four weeks travel to the UAE starting January 4.
Zhao hoped to travel to see a friend or family member undergoing surgery and staying in hospital.
Furthermore, the letter also revealed that Zhao's legal team made an astonishing offer of his complete equity stake in Binance.US, valued at a staggering $4.5 billion, as a financial security to ensure his timely return to the United States.
"Mr. Zhao is prepared to provide significant additional property and financial security to assure his timely return, including pledging all of his equity in Binance US, which was worth $4.5 billion in the last round of fundraising 2 years ago," the court filing read.
Court records confirm that Judge Jones denied the request during a closed-door hearing held on December 29.
It is essential to highlight that certain portions of the recently unsealed letter remain redacted, concealing details such as the individual undergoing surgery, the specific nature of the surgery, and various other sensitive and personal information.
Last year, Zhao had petitioned the court to safeguard the privacy of his child by requesting the sealing of confidential information to prevent its public disclosure.
Prior to all these, the former Binance CEO entered a guilty plea to a single charge of violating the Bank Secrecy Act and was granted release on a $175 million personal recognizance bond.
This release involved certain cash placed in escrow and guarantors offering assets valued at $5 million as collateral, with these arrangements established in November.
Initially, the court had granted Zhao permission to return to his residence in the UAE and subsequently return to the U.S. in the weeks leading up to his sentencing.
However, following a motion filed by the U.S. Department of Justice (DOJ), the judge opted to stay his decision regarding Zhao's travel authorization.
This decision effectively left the prominent figure in the cryptocurrency industry stranded in the United States.
The DOJ articulated several concerns regarding Zhao's travel to the UAE, including the potential flight risk posed by the Binance founder and his status as a citizen of the UAE, a nation that lacks an extradition treaty with the U.S.
