Court Restrains CZ’s Travel to UAE, Despite Proposal to Utilize $4.5B Binance Equity as Collateral

Court Restrains CZ's Travel to UAE, Despite Proposal to Utilize $4.5B Binance Equity as Collateral


A U.S. Judge Denies CZ’s Request to Travel to the UAE

Last month, Binance founder and former CEO Changpeng ‘CZ’ Zhao requested permission to travel to the United Arab Emirates (UAE) for personal reasons. However, a U.S. judge rejected his request, citing concerns about his potential flight risk. The judge highlighted Zhao’s significant wealth and property abroad, as well as his lack of ties to the United States.

Zhao Offers $4.5 Billion Binance US Equity as Security

In an attempt to secure permission, Zhao’s legal team offered his $4.5 billion Binance US equity as security for his return. They also emphasized that he would provide additional financial security to guarantee his timely comeback.

Guilty Plea and Consequences

In November 2023, Zhao pleaded guilty to charges related to the lack of an effective anti-money laundering program at Binance. As part of a settlement with the U.S. Department of Justice, he agreed to step down as CEO of Binance and face a potential prison sentence ranging from 10 to 18 months.

Binance’s Penalties and Exit from the U.S. Market

Under the settlement agreement, Binance was required to pay $4.3 billion in penalties for anti-money laundering and sanctions violations. Additionally, they had to exit the U.S. market completely.

Hot Take: Judge Remains Cautious About CZ’s Travel

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The recent denial of CZ’s request demonstrates the court’s concern about his potential flight risk. Despite offering substantial financial security, including his Binance US equity, Zhao was unable to convince the judge that he should be allowed to travel to the UAE for personal matters.

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