Recently, Binance founder, Changpeng “CZ” Zhao, faced rejection by a federal judge regarding his request to travel to the United Arab Emirates (UAE) for personal reasons. Despite offering to post his Binance equity worth $4.5 billion as security, the judge denied his request. This decision was revealed in a new court filing, shedding light on the ongoing legal battle surrounding Zhao’s case.
Changpeng Zhao had pleaded guilty in November to failing to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As a result, Binance agreed to pay $4.3 billion in penalties. Zhao voluntarily stepped down as CEO but remains free in the U.S. on a $175 million release bond. However, his recent request to travel to the UAE for a significant personal matter has been met with repeated rejections.
In a letter addressed to Judge Richard Jones, Zhao’s lawyers sought permission for him to travel to Abu Dhabi from January 4 for a duration of one to four weeks. The purpose of the trip was to be present for the hospitalization, surgery, and subsequent recovery of an unidentified individual. However, federal prosecutors did not provide their consent for Zhao’s request.
Judge Richard Jones, in a closed hearing on December 29, denied Zhao’s bid to travel to the UAE. His decision was primarily based on concerns about the defendant being a flight risk due to his significant wealth and international property holdings. Additionally, the judge remarked that Zhao’s ties to the UAE, where his family resides, further raised concerns about his willingness to return to the United States.
This recent denial of travel request by the federal judge is not the first time that Zhao faced such a setback. In an earlier request, he was also denied permission to travel to the UAE. Judge Jones’ rejection cited similar reasons, emphasizing the defendant’s substantial wealth and lack of ties to the United States.
The repeated rejection of Changpeng Zhao’s travel requests highlights the concerns of the court regarding his potential flight risk. With an enormous net worth and property abroad, Zhao’s ability to evade future legal obligations raises red flags. Furthermore, his favored status in the UAE adds to the doubts surrounding his commitment to maintaining his presence in the United States.
Changpeng Zhao’s request to travel to the UAE for personal reasons has been consistently denied by the federal judge overseeing his case. Concerns about his significant wealth, lack of ties to the United States, and privileged status in the UAE have led to the conclusion that granting his requests could compromise the legal process. As his sentencing date approaches, it remains to be seen how these travel restrictions and their underlying implications will affect the final outcome of the case.
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