A federal judge recently denied a request by Changpeng “CZ” Zhao, the founder of Binance, to travel to the United Arab Emirates (UAE) for personal reasons. In a court filing, it was revealed that Zhao had requested permission to travel for the “hospitalization and surgery” of a person in his life. Despite offering to post his Binance equity as security for his return to the U.S., the judge rejected the plea.
Zhao’s lawyers noted in their letter to Judge Richard Jones that his Binance equity was worth $4.5 billion, based on the company’s last round of fundraising two years ago. This substantial amount highlights the magnitude of the founder’s request. However, even with this immense value at stake, the judge still denied Zhao’s travel request.
Zhao had previously pleaded guilty to failing to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As a result, Binance agreed to pay $4.3 billion in penalties. Although Zhao stepped down as CEO due to his plea, he has remained free in the U.S. on a $175 million release bond.
In the letter to Judge Jones, Zhao’s lawyers requested permission for him to travel to Abu Dhabi for a period of one to four weeks. The purpose of his travel was to be present for the hospitalization, surgery, and subsequent recovery of someone in his life. Unfortunately for Zhao, the judge denied his bid to travel, citing the “enormous wealth” that made him a significant flight risk.
One of the main reasons for the judge’s denial was Zhao’s “enormous wealth” and property abroad. With his family residing in the UAE and his favored status there, the judge believed that Zhao had significant means and connections that could facilitate a potential flight. Therefore, the judge deemed it necessary to restrict his travel.
With Zhao’s sentencing scheduled for February 23rd, the denial of his travel request could have implications on the outcome of his case. Failing to be present for the person’s hospitalization, surgery, and recovery period may affect the judge’s perception of Zhao’s remorse and commitment to taking responsibility for his actions.
The denial of Changpeng “CZ” Zhao’s request to travel to the UAE highlights the judge’s concerns regarding his wealth and potential flight risk. Despite offering his Binance equity as security, the judge believed that the risks outweighed the personal reasons for travel. As the sentencing date approaches, it remains to be seen how this decision will impact his plea deal and the final judgment in his case.
Leave a Reply