CZ Attempts to Pledge Binance Stake for US Exit

In January, CZ reportedly sought to pledge his entire stake in Binance to exit the US market.

Newly unsealed court documents reveal that a judge rejected CZ’s request to travel to the UAE, despite his proposal to secure his multibillion-dollar stake.

A court filing dated Jan. 24 discloses that CZ, the former CEO of Binance.US, attempted to use his multibillion-dollar stake in the company, valued at $4.5 billion based on a funding round two years ago, as security for temporary travel to the UAE.

The Dec. 22 letter from CZ’s lawyers, previously sealed, stated his intention to travel to the UAE for up to four weeks in early January, but federal prosecutors did not approve the request.

Judge Richard Jones, as per court records, denied CZ’s request in a closed-door hearing on Dec. 29.

Since pleading guilty to money laundering on Nov. 21, Zhao has been on a $175 million bond in the United States, facing a possible prison sentence of up to 18 months per his plea agreement.

Judge Jones, in his bond conditions, previously prohibited Zhao from traveling to the UAE, citing his “enormous wealth and property abroad” and the risk of potential “flight” if he returned to the UAE.

Zhao is ordered to remain in the United States until his sentencing on Feb. 23, with his current location unknown since his last post on X was on Dec. 6, 2023.

As part of a $4.3 billion settlement with U.S. regulators, Zhao stepped down as Binance’s CEO in November 2022, admitting to running an unlicensed money-transmitting business and violating the Bank Secrecy Act.

The recent legal developments shed light on the intricate legal landscape surrounding Zhao, adding further complexity to his situation as he awaits sentencing.

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