“Binance.US Shares Offered as Collateral in Former Binance CEO Zhao Changpeng’s Court Appeal for Return to UAE”

"Binance.US Shares Offered as Collateral in Former Binance CEO Zhao Changpeng's Court Appeal for Return to UAE"

"Binance.US Shares Offered as Collateral in Former Binance CEO Zhao Changpeng's Court Appeal for Return to UAE"

According to a report by Cointelegraph, court documents have revealed that former CEO of cryptocurrency exchange Binance, Changpeng Zhao (CZ), attempted to use his holdings in Binance.US worth billions of dollars as collateral in order to be temporarily allowed to return to the United Arab Emirates. However, the request has been denied by the judge.

Court documents released on January 24th disclosed a sealed letter sent by CZ’s lawyer to Judge Richard Jones on December 22nd last year. The letter showed that CZ proposed to use his equity in Binance.US as collateral. According to the contents of the letter, the value of these equities was based on a financing round two years ago, amounting to approximately $4.5 billion.

CZ initially hoped to travel to the UAE in early January, staying for one to four weeks to visit a friend or family member who was undergoing surgery and hospitalization. However, the letter stated that federal prosecutors did not agree to this request. Court records show that the judge rejected this request at a closed-door hearing on December 29th.

As previously reported by Zombit, the US Department of Justice claimed last year 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 lawyer objected to this, but the judge agreed with the arguments put forth by the US Department of Justice and ruled that CZ must remain in the United States until sentenced for violating US anti-money laundering laws.

Under the bail conditions, CZ must stay in the United States but is free to travel and engage in activities within the country. His sentencing hearing is scheduled for February 23rd, 2024.

Related reports: “Binance’s Changpeng Zhao Resigns: May Face 18 Months of Imprisonment, Sends Farewell Letter” and “Binance Officially Enters the ‘Post-CZ Era’! Why is this Criminal Investigation Seen as a Fundamental Positive?”