Key takeaways:
- In an attempt to gain permission to temporarily return to the UAE, former Binance CEO CZ attempted to pledge his multibillion-dollar interest in Binance US.
- In a closed-door meeting on December 29, according to court records, Judge Richard Jones rejected the request.
In an attempt to gain permission to temporarily return to the United Arab Emirates, former Binance CEO Changpeng Zhao attempted to pledge his multibillion-dollar interest in Binance US, according to a recently disclosed court document.
The January 24 court filing revealed a previously sealed December 22 letter from Zhao’s attorneys to Judge Richard Jones, indicating that Zhao offered up his ownership stake in Binance US. The letter stated that Zhao’s share in Binance US was valued at $4.5 billion based on a funding round that occurred two years prior.
In the letter, it was mentioned that federal prosecutors had refused Zhao’s request to spend up to four weeks in the United Arab Emirates in early January in order to visit a friend or relative who was undergoing surgery and would be staying in a hospital.
In a closed-door meeting on December 29, according to court records, Judge Richard Jones rejected the request.
Zhao entered a guilty plea to money laundering on November 21 and is presently free in the US on a $175 million bail. He promised not to challenge any punishment up to eighteen months in jail. He could spend up to eighteen months behind bars.
The name of the patient, the procedure’s name, and other private and sensitive details are mentioned in portions of the freshly released letter that have not yet been entirely redacted.
As part of the original terms of CZ‘s bond, Jones had barred him from entering the UAE, claiming that Zhao’s vast wealth and overseas property made it likely that he would leave if he returned.
He commanded the former CEO of Binance to remain in the country until his sentence on February 23. Zhao last posted on December 6, 2023, so it’s unclear where he is in the nation. He hasn’t been very active on X.
In November 2022, Zhao announced his resignation as CEO of Binance as part of a $4.3 billion settlement with US regulators. In the settlement, Zhao acknowledged operating an unauthorized money-transmitting firm and breaking the Bank Secrecy Act.
