According to a report by Cointelegraph, court documents have revealed that former CEO of cryptocurrency exchange Binance, Zhao Changpeng (CZ), attempted to use his billions of dollars worth of shares in Binance.US as collateral in order to be granted temporary return to the United Arab Emirates. However, the request has been denied by the judge.
Court documents published on January 24th disclosed a sealed letter sent by CZ’s lawyer to Judge Richard Jones on December 22nd last year, which showed CZ proposing to use his equity in Binance.US as collateral. According to the letter, the value of these shares was based on a funding round two years ago, amounting to approximately $4.5 billion.
CZ had originally hoped to travel to the UAE in early January and stay for one to four weeks to visit a friend or family member undergoing surgery and hospitalization. However, the letter indicated that federal prosecutors did not agree to this request. Court records show that the judge rejected the request in a closed-door hearing on December 29th.
As previously reported by Zombit, last year the US Department of Justice claimed that CZ posed a flight risk and requested the judge to revoke the bail conditions that had originally allowed CZ to return to the UAE. CZ’s defense lawyers objected to this, but the judge sided with the arguments of the US Department of Justice and ruled that CZ must stay in the US until sentenced for violating US anti-money laundering laws.
Under the bail conditions, CZ is required to stay in the US but is allowed to travel and engage in activities within the country. His sentencing hearing is scheduled for February 23rd, 2024.
Related reports: “Binance’s Zhao Changpeng Resigns: Faces 18 Months of Imprisonment, Issues Public Farewell Letter” and “Binance Officially Enters the ‘Post-CZ Era’! Why is this Criminal Investigation Seen as a Fundamental Positive?”
