A U.S. judge denied Changpeng ‘CZ’ Zhao’s request to travel to the United Arab Emirates (UAE) last month, despite offering to use his $4.5 billion stake in Binance US as security for his return. In December 2023, Zhao filed the request, stating that he needed to travel to the UAE to be present during the “hospitalization and surgery” of an unidentified individual in Abu Dhabi.
Zhao, who pleaded guilty in November 2023 for failing to maintain an effective anti-money laundering program at Binance, negotiated his resignation as CEO as part of a settlement with the U.S. Department of Justice. This agreement also required Binance to exit the U.S. market and pay $4.3 billion in fines for violations of anti-money laundering laws and other sanctions.
Changpeng Zhao’s Offer Did Not Tip the Judge’s Scale
Zhao’s lucrative offer didn’t amount to much. The judge deems the flight risk as imminent, leading to the denial of his request. The U.S. Department of Justice remains steadfast in its stance, having dealt severe penalties to both Binance and CZ. It appears that justice is determined to pursue the matter to the fullest extent with the entrepreneur, who is about to discover what the future holds for him. He is likely to face a short prison sentence for the responsibilities and crimes attributed to him in the country.
Prosecutors argued that Zhao posed a flight risk as a UAE citizen with substantial wealth outside the United States. Minimal ties to the country, and residence in a nation without an extradition treaty. Despite Zhao’s offer to use his Binance US stake as security. The judge deemed it insufficient to mitigate the risk of Zhao not returning.
This denial of the travel request adds to Zhao’s complex legal situation. Facing a potential 10 to 18 months in prison under federal sentencing guidelines. The sentencing hearing scheduled for February 23, 2024, will finalize his guilty plea and settlement with the Department of Justice.
