The U.S. District Court of the Western District of Washington at Seattle has rejected a request from Changpeng Zhao, co-founder and former CEO of Binance, to exit the United States to attend a surgery scheduled for an individual in his life in the United Arab Emirates (UAE). Binance is recognized as the world's largest cryptocurrency exchange by trading volume.
According to court documents, Zhao's attorneys petitioned Judge Richard Jones to permit Zhao to travel to the UAE on January 4, 2024, for a duration ranging from one to four weeks. The document indicated that an individual in Zhao's life was due for a surgical procedure on January 5, with an estimated recovery period of two weeks. The attorneys requested that if Zhao was not granted permission to travel to the UAE for the desired timeframe, he should at least be allowed to visit from January 4 through January 11. As assurance of his return to the United States, Zhao offered his Binance equity, last appraised at $4.5 billion, as collateral.
As per court records reported by CNBC, Jones dismissed the request in a closed hearing. In November, Zhao admitted guilt for failing to uphold effective anti-money laundering (AML) controls within Binance and resigned from his position as CEO. His sentencing is slated for February 23.
A crypto influencer questioned the logic behind depicting Zhao as a flight risk in a post on X. The post stated: "The treatment of CZ makes no sense. Why would he be a flight risk when:
- He voluntarily flew to the US to plead
- He faces many more years if he flees than the potential 18 months
- He's one of the most recognizable people in crypto
- It could jeopardize the Binance deal"
Zhao's guilty plea was part of an agreement between Binance and several U.S. government agencies aimed at resolving past compliance issues. Furthermore, Binance agreed to pay $4.3 billion in penalties and to permit a third-party monitor access to its transactions and accounts, as per a press release from the Department of Justice.
In a November post on X regarding the settlement, Zhao stated that stepping down from his role as CEO of Binance was the most suitable course of action for both the company and the crypto community. "I made mistakes, and I must take responsibility," said Zhao. He highlighted that in the resolution, U.S. government agencies did not accuse Binance of misappropriating any customer funds or participating in market manipulation.