Ex-Binance CEO's Attempt to Pledge $4.5B Stake for Travel Permission Rejected by Court
Summary:
Ex-Binance CEO, Changpeng Zhao, attempted to use his Binance.US stake, valued at $4.5 billion, as a guarantee for temporary travel permission to the UAE, according to a recently disclosed court document. However, this was rejected by Judge Richard Jones. Currently out on a $175 million bail in the US after pleading guilty to money laundering, Zhao faces up to 18 months prison term. Formerly banned from traveling to UAE due to his flight risk and overseas assets, Zhao is commanded to remain in the US until his February 23 sentencing.
Ex-Binance Chief Executive, Changpeng Zhao, recently attempted to leverage his massive Binance.US shares estimated to be worth billions, hoping this would grant him temporary leave to the United Arab Emirates according to recently disclosed court records. The court document dated 24th January revealed a letter, initially sealed, dated 22nd December to Judge Richard Jones from Zhao's legal team, affirming Zhao's intention to utilize his Binance.US equity, valued at an estimated $4.5 billion, according to a funding round two years prior as security. However, Judge Jones rejected this during an off-record hearing on 29th December. Zhao was found guilty of money laundering charges on 21st November and is currently released on a $175 million bail within the United States, facing a potential prison term of 18 months maximum, and has pledged not to contest any sentence up to this duration. Redacted sections of the letter hold reference to the name of an individual undergoing surgery, the surgery type, and other personally sensitive data. There's an obscured part of the letter showing Zhao's offer of his Binance.US shares. Source: CourtListener. Related: Debates on representations of cryptocurrency as securities by Binance and SEC legal representatives: Report. Judge Jones had earlier prevented Zhao from travelling to UAE, referencing his immense global wealth and assets as well as his potential flight risk. He commanded that the ex-Binance head remain in the United States up until his sentencing scheduled for February 23rd. Zhao left his CEO position at Binance in November 2022, following a $4.3 billion settlement with U.S. regulatory bodies, admitting to operating an unauthorized money transmission business and infringing the Bank Secrecy Act. Magazine: A billion-dollar secret in DeFi: Identifying the insiders related to cyber hacks.
Published At
1/25/2024 8:23:02 AM
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