Former Binance CEO's Attempt to Leave the US Using His Stake in the Company as Bail Denied
Date: 2024-01-25 Author: Dima Zakharov Categories: IN WORLD
Changpeng Zhao's Bail Request Denied
Former CEO of the world's largest cryptocurrency exchange, Binance, Changpeng Zhao, made a bold attempt to secure his release from the United States by offering his ownership stake in Binance.US as collateral. This move was revealed through court documents and has gained significant attention in the cryptocurrency community and beyond.
A Desperate Bid for Freedom
In a letter dated December 22, Zhao's legal team requested that Judge Richard A. Jones release their client to the United Arab Emirates for four weeks in early January. They cited the need to support a close family member recovering from surgery in a hospital there. The proposed collateral for his release was Zhao's stake in the company, which was valued at $4.5 billion based on a funding round two years ago.
Judge Rejects the Plea
However, Judge Jones denied the request during a closed hearing on December 29, leaving Zhao's legal situation unchanged.
Ongoing Legal Troubles
Changpeng Zhao personally admitted to money laundering charges in a US federal court on November 21. As part of the agreement with FinCEN (Financial Crimes Enforcement Network), Binance is required to exit its US operations and appoint a monitor to oversee its sanctions compliance program for five years.
Implications for Binance
While Binance US remains unaffected by these measures, Binance will pay fines of $3.4 billion to FinCEN and $968 million to OFAC (Office of Foreign Assets Control).
Zhao's Future Uncertain
Apart from posting a $175 million bail and a $50 million fine, Zhao is permanently barred from involvement with Binance. His sentencing is scheduled for February 24, with potential prison time of up to 18 months, although prosecutors suggest that the United States may seek the maximum legal penalty of ten years.
Avoiding Capture
On November 28, a judge supported the US Department of Justice's argument that Zhao might attempt to evade justice, leading to the denial of his request to leave the US. Zhao's current whereabouts are unknown, and he has been notably quiet on social media, with his last post on Twitter (now X, a social network) dated December 6.
