Zhao Changpeng's request to mortgage his equity to temporarily return to the UAE was rejected

Author: Jesse Coghlan, Cointelegraph; Compiler: Songxue, Golden Finance

According to a newly unsealed court document, former Binance CEO Changpeng Zhao tried to transfer dozens of his holdings in Binance.US billion in equity as collateral to be allowed to temporarily return to the United Arab Emirates.

Court documents on January 24 disclosed a previously sealed letter, dated December 22, from Zhao Changpeng’s lawyer to Judge Richard Jones. According to the letter, Changpeng Zhao provided as collateral his stake in Binance.US, which was worth $4.5 billion based on a funding round two years ago.

Changpeng Zhao originally hoped to travel to the United Arab Emirates in early January to help friends or family members who were undergoing surgery and were hospitalized, but the letter noted that federal prosecutors did not agree to this request.

Court records show that Judge Richard Jones denied the request at a closed hearing on December 29.

Zhao Changpeng pleaded guilty to money laundering charges on November 21 and is currently free in the United States on a $175 million bail. He faces a maximum sentence of 18 months in prison and has agreed not to appeal against a sentence of no more than that length.

Some elements of the recently declassified correspondence remain redacted.

An edited portion of the letter shows that Changpeng Zhao offered his Binance.US shares. Source: Court Audience

Prior to this, Jones had prevented Changpeng Zhao from traveling to the UAE because of his huge wealth and properties abroad. This was originally part of his bail conditions, Jones said, If he returns to the UAE, he "may flee".

He ordered the former Binance boss to stay in the United States until his sentencing date on February 23. Changpeng Zhao’s specific whereabouts in the United States are unknown. He has maintained a relatively low profile on X, and his last release was on December 6, 2023.

Changpeng Zhao resigned as Binance CEO in November 2022 as part of a $4.3 billion settlement with U.S. regulators, admitting to operating an unlicensed exchange and Violation of the Bank Secrecy Act.