Changpeng Zhao, founder of leading crypto exchange Binance, recently faced a setback when a federal judge rejected his plea to visit the United Arab Emirates (UAE) for personal reasons. This occurred even after Zhao proposed pledging $4.5 billion worth of Binance equity to guarantee his return to the U.S.
The rejection highlights the legal hurdles confronting Zhao following his admission of guilt over anti-money laundering lapses at Binance. Court records show Zhao’s lawyers asked Judge Richard Jones on December 22 to allow a 1-4 week trip to the UAE to support an unnamed individual’s hospitalization and recovery. Although Zhao offered Binance equity equal to its last fundraising valuation two years ago as assurance, federal prosecutors opposed the request.
In a December 29 closed hearing, Judge Jones denied Zhao’s application to travel, marking the second rejection over flight risk concerns given Zhao’s wealth and lack of strong U.S. ties. Earlier, Zhao had pleaded guilty in Seattle federal court for Binance’s anti-money laundering failures.
As part of the resolution, Binance agreed to pay $4.3 billion in penalties. Zhao faces sentencing on February 23 but has so far remained free in the U.S. under a $175 million bond. The travel rejection despite the substantial equity offer underscores the complex legal challenges for major crypto figures like Zhao. His case provides insights into the interplay between crypto, regulations, and personal legal issues as sentencing nears.
