CZ’s Attempt to Pledge Binance US Stake Denied by Court
In a recent court filing, it was revealed that Changpeng ‘CZ’ Zhao, the former CEO of Binance, was willing to pledge his $4.5 billion stake in Binance US in order to leave the United States. CZ requested permission to travel to the United Arab Emirates (UAE) due to medical reasons related to a family member’s hospitalization and surgery.
The Reason Behind CZ’s Pledge
CZ wanted to return to the UAE to be present for his relative’s medical situation. The letter sent to Judge Richard Jones stated that CZ’s lawyers requested permission for him to travel on January 4 and stay in the UAE for up to four weeks. However, despite CZ’s willingness to pledge his stake, the court rejected his request. Previously, Judge Jones had ordered CZ not to leave the US in a ruling on December 29.
The Sensitive Information Regarding CZ’s Child
Another court filing suggests that the relative in question is likely CZ’s child. Prior to Judge Jones’ ruling, CZ’s lawyers had filed a motion to seal the motion related to their client’s travel permission due to containing “sensitive private medical information regarding Mr. Zhao’s child.”
CZ Stepping Down and Pending Sentencing
In November, CZ stepped down as CEO of Binance as part of a $4 billion settlement with the US government following charges of anti-money laundering violations. His sentencing is scheduled for February 23, and he must remain in the US until then. CZ could face up to 18 months in prison, although experts have suggested it could be longer. Meanwhile, Binance has recovered from the setback and has seen over $4 billion inflow since settling with authorities.
Hot Take: CZ’s Desperate Attempt to Leave the US
The recent court filing reveals CZ’s desperation to leave the US for medical reasons, offering to pledge his significant stake in Binance US. However, the court rejected his request, emphasizing that he must remain in the country until his sentencing. This case highlights the legal consequences faced by top figures in the crypto industry and the scrutiny surrounding anti-money laundering violations. As CZ awaits his fate, Binance has managed to overcome its challenges and regain stability, attracting billions of dollars in new investments.
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