#ChangpengZhao #BinanceUS #CryptoNews #JusticeDepartment #CryptoExchange #LegalIssues #Binance #CEOResignation
A recent court document has shed some light on the ongoing legal trouble of ex-CEO of Binance, Changpeng ‘CZ’ Zhao. Reportedly, Zhao was ready to offer his massive $4.5 billion stake in Binance US as a pledge for his request to leave the U.S. for a short period. Zhao sought the court’s permission to depart for the United Arab Emirates (UAE), providing medical reasons in his appeal.
In a letter sent on December 22, 2023, to Judge Richard Jones, Zhao expressed his wish to be in UAE to be present for the hospitalization and surgery of presumably a family member, as the actual relationship is redacted in the document. Zhao’s legal team requested granting their client a travel permit to the UAE for up to 4 weeks, starting from January 4. To alleviate any concerns about his return to the U.S., Zhao offered to pledge his significant stake in Binance US. However, this initiative was not sufficient to persuade the court, and the request was ultimately turned down.
Additional court filings suggest that the family member needing medical attention might be Zhao’s child. Prior to Zhao’s travel request being dismissed by Judge Jones in a ruling on December 29, his lawyers filed a motion to seal the motion relating to their client’s travel permission, stating that the motion enclosed “sensitive private medical information regarding Mr. Zhao’s child.”
The former Binance CEO has been in hot water since stepping down from his position at the world’s largest crypto exchange in November, following a $4 billion settlement with the U.S. government. The Justice Department, along with other authorities, had accused Zhao and the firm of anti-money laundering infringements. As part of his plea deal, Zhao’s sentencing has been scheduled for February 23, necessitating his stay in the U.S. until that date. The ex-CEO could face up to 18 months imprisonment, possibly more, as sources indicate. Amidst his legal woes, Zhao has chosen to maintain a low profile, quietly waiting for the court’s final verdict. Meanwhile, Binance seems to have successfully recovered from the incident, recording an inflow of over $4 billion since its settlement.
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