In a recent court filing, it was revealed that Binance founder Changpeng “CZ” Zhao had his request to travel to the United Arab Emirates (UAE) denied by a federal judge. The purpose of his travel was for the “hospitalization and surgery” of an undisclosed individual in his life. Despite offering to post his Binance equity worth $4.5 billion as security for his return to the U.S., Judge Richard Jones rejected the request, thereby prohibiting Zhao from leaving the country. This decision comes after Zhao’s guilty plea in November for failing to maintain an effective anti-money laundering program at Binance, resulting in the world’s largest cryptocurrency exchange agreeing to pay $4.3 billion in penalties. With his sentencing scheduled for February 23, Zhao remains free in the U.S. on a $175 million release bond.
The Request for Travel
Zhao’s lawyers submitted a letter to Judge Jones, seeking permission for their client to travel to Abu Dhabi from January 4 to attend to the hospitalization, surgery, and subsequent recovery of an unnamed individual. The letter emphasized the value of Zhao’s Binance equity and offered it as security for his return. However, the letter also noted that federal prosecutors had not consented to the travel request. A closed hearing was held on December 29 to discuss the matter, and court records confirm that Zhao’s request was ultimately denied.
This is not the first time Judge Jones has denied Zhao’s travel request. In a previous ruling, the judge cited Zhao’s “enormous wealth” as a significant flight risk. He pointed out that Zhao possesses substantial wealth and property overseas, with his family residing in the UAE. Furthermore, Jones noted that Zhao appears to have favored status in the UAE, adding to the concern of potential flight. The judge’s decision reflects the need to prevent individuals with significant resources from evading justice.
With Zhao’s sentencing approaching, the denial of his travel request presents implications for his ability to handle personal matters outside the U.S. While it is understandable that he may have personal obligations, the judge’s decision prioritizes legal proceedings and the risk of flight over convenience. As a high-profile figure in the cryptocurrency industry, Zhao’s case serves as a reminder that even influential individuals must face legal consequences for their actions. It remains to be seen how this decision will impact Zhao’s defense strategy and potential sentencing. The outcome of the case and any future appeals will shape the future of Binance and its founder’s legacy.
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