Former Binance CEO’s  CZ failed attempt to pledge stake for UAE Travel

In a recent court development, Changpeng Zhao, the former CEO of Binance, made an unsuccessful attempt to pledge his multibillion-dollar stake in Binance.US as collateral in exchange for temporary travel permission to the United Arab Emirates (UAE). 

This revelation came to light through newly unsealed court documents that shed light on the legal proceedings surrounding Zhao’s ongoing case. The court filing unveiled a previously confidential letter sent to Judge Richard Jones by Zhao’s legal team.

CZ Binance Pledge of multibillion-dollar stake

According to the letter, Changpeng Zhao offered his equity in Binance.US as security for his request to travel temporarily to the UAE. The equity was valued at a substantial $4.5 billion, based on a funding round that took place two years prior. 

This move was seen as an attempt by Zhao to secure his ability to leave the United States temporarily, despite facing legal challenges.

Judge’s denial of travel request

However, the court records reveal that Judge Richard Jones denied Zhao’s request during a closed-door hearing. The reasons behind the denial were not explicitly stated in the available information. Nevertheless, this decision effectively prevented Zhao from leaving the United States until his scheduled sentencing on February 23.

Zhao’s legal situation

Changpeng Zhao’s legal troubles stem from his guilty plea to money laundering charges. Currently, he remains free on a $175 million bond in the United States, pending his sentencing. As part of his plea agreement, Zhao has agreed not to appeal any sentence of up to 18 months in prison. 

This case has garnered significant attention due to its implications for the cryptocurrency industry and Zhao’s prominent role as the former CEO of Binance.

Judge’s concerns and previous travel restrictions

Judge Jones had previously expressed concerns about Zhao’s potential flight risk, given his substantial wealth and international ties. In addition to denying Zhao’s recent travel request, the judge had previously ordered him to remain in the United States. 

These measures were taken in light of Zhao’s “enormous wealth and property abroad,” as cited in the court records.