According to a report by Cointelegraph, court documents have revealed that former CEO of cryptocurrency exchange Binance, Zhao Changpeng (CZ), attempted to use his multi-billion dollar stake in Binance.US as collateral to be granted temporary return to the United Arab Emirates, but the request was denied by the judge.
Court documents released on January 24th disclosed that CZ’s lawyers sent a sealed letter to Judge Richard Jones on December 22nd last year, in which CZ proposed using his stake in Binance.US as collateral. The value of these shares, according to the letter, was based on a financing round two years ago, totaling around $4.5 billion.
CZ had originally planned to travel to the UAE in early January for one to four weeks to visit a friend or family member undergoing surgery and hospitalized, but the letter indicated that federal prosecutors did not agree to this request. Court records show that the judge denied this request at a closed-door hearing on December 29th.
According to previous reports by Zombit, last year the U.S. Department of Justice claimed that CZ posed a flight risk and requested the judge to revoke the bail conditions that originally allowed CZ to return to the UAE. CZ’s defense lawyers objected to this, but the judge sided with the U.S. Department of Justice, ruling that CZ must remain in the United States before being sentenced for violating U.S. anti-money laundering laws.
Under the bail conditions, CZ is required to stay in the U.S. but can freely travel and operate within the country. His sentencing hearing is scheduled for February 23, 2024.
Related reports: “Binance’s Zhao Changpeng pleads guilty and steps down: Facing 18 months in prison, issues public letter of farewell” “Binance officially enters the ‘post-CZ era’! Why is this criminal investigation seen as a fundamental positive?”