Changpeng Zhao’s Travel Request Denied
Changpeng Zhao, the founder of Binance, had his request to travel to the United Arab Emirates denied by a federal judge. Zhao proposed using his $4.5 billion stake in Binance as collateral, but the request was rejected. This setback comes after Zhao pleaded guilty to failing to maintain an effective anti-money laundering program at Binance and agreed to pay $4.3 billion in penalties. Despite stepping down as CEO and awaiting sentencing, Zhao has remained free on a $175 million release bond.
Zhao’s Travel Purpose and Concerns
Zhao’s lawyers submitted a letter requesting permission for him to travel to Abu Dhabi for one to four weeks. The purpose of the travel was related to the hospitalization, surgery, and recovery of an individual whose identity was redacted. However, Judge Jones denied the request, citing concerns about Zhao being a flight risk due to his “enormous wealth” and family residing in the UAE.
Differences in Treatment
The denial of Zhao’s travel request contrasts with other cases involving crypto CEOs. Former Celsius CEO Alex Mashinsky is free on a $40 million bond, while former FTX CEO Sam Bankman-Fried was initially allowed to stay in his parents’ home but later ordered remanded due to allegations of witness intimidation.
Hot Take: Restrictions on Crypto CEOs
The denial of Changpeng Zhao’s travel request highlights the restrictions faced by crypto CEOs who face legal issues. While Zhao remains free on bond, he has been denied permission to travel outside the United States despite his substantial stake in Binance. This raises questions about flight risks and the treatment of crypto executives compared to other individuals facing similar charges. As the crypto industry continues to face scrutiny, the actions and limitations placed on its leaders will be closely watched.
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