CZ Tried to Pledge his $4.5 Billion Stake in Binance to Leave US

CZ Tried to Pledge his $4.5 Billion Stake in Binance to Leave US

Binance CEO, Changpeng Zhao, is now detained in the United States as the courts have decided to restrict his travel on account of fleeing suspicions. Courts have decided to detain the former CEO of Binance.US until the next hearing sentence. However, CZ is determined to travel back to UAE to meet his family.

On this account, his lawyers have also submitted an application at the court sharing medical records regarding an undisclosed ailment of his son. Nevertheless, the former executive seems determined to take leave as recent court filings indicate.

As per media reports, CZ has offered his multi-million dollar Binance stake as a security to get approval for UAE travel. However, the court has rejected the request. CZ was using his security stake at Binance as a surety to take the legal system in confidence about his return to the USA before the next court hearing.

The court filing published on 24th January 2024 relayed a letter addressed to Judge Richard Jones in which CZ offered his Binance.US equity as collateral conditioned with his return. At the current price, the stake to be pledged is valued at $4.5 billion following the latest funding round evaluation that took place two years ago.

Judge Denies CZ’s Request to Visit His Family

Former Binance CEO, CZ has been trying to attend an important surgery of a family member or acquaintance in UAE. On this account, his lawyers submitted a court request to allow the executive to attend the hospital and stay for the surgery for four weeks.

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However, the federal prosecutors seem to have denied the request. The records from the court indicated that the appointed judge on the case dismissed the request on the 29th December behind-the-scenes hearing.

His next hearing is due on 23rd February 2024 where he can face up to 18 months behind bars if convicted. At the same time, his sentencing does not allow the lawyers to apply for any type of appeal for the sentencing before the term of prison is completed.

For now, defense lawyers managed to get him out on a $175 million bond. He pleaded guilty to money laundering charges on 21st November, 2023. CourtListener has published redacted fragments of the unsealed letter in which the defense shared information about the CZ’s acquaintance’s surgery, in addition to sensitive medical and personal details.

Judge Jones Orders CZ to Stay in the US for Legal Hearing

Judge Jones, the presiding judge on the case has cited that CZ’s request to travel back to UAE has been denied on account of bond terms. The judge further stated that CZ is suspected of fleeing if he is allowed to travel to UAE.

Furthermore, the judge has ordered the former executive to stay in the United States until 23rd February, 2024. It is the date of his sentencing hearing. At the time, Zhao had kept his whereabouts in the United States undisclosed.

At the same time, he has continued to remain absent from X with his last post dating back to 6th December, 2023. He stepped down as CEO of Binance in November 2023 as part of a $4.3 billion settlement with regulators.

His guilty plea includes charges of operating an uncertified money-laundering firm and violating Bank Secrecy Act. The charges were brought by CFTC and the US Justice Department against CZ and Binance.

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