Changpeng Zhao’s $4.5 Billion Bail Offer Rejected for UAE Travel

Published by

Qadir AK

January 25, 2024

U.S. SEC Found CZ’s ‘Backdoor’ Access to Users Fund

In a surprising development, Binance founder faced a setback in his attempt to travel to the UAE. Despite offering an unprecedented $4.5 billion in equity as collateral, a U.S. federal judge firmly denied the request.

This drama unfolds against the backdrop of personal health concerns, sensitive information, and the ongoing SEC vs. Binance courtroom confrontation.

The $4.5 Billion Gamble

Changpeng Zhao, the driving force behind Binance, encountered a roadblock when a federal judge rejected his plea to travel. Zhao had staked a colossal $4.5 billion in equity, tying it to Binance’s valuation from a fundraising round two years prior. This audacious move aimed to secure his freedom amid legal challenges, despite his prior resignation as CEO. Currently, Zhao remains on U.S. soil under a $175 million release bond, with his sentencing scheduled for February 23.

Last month, CZ’s legal team sought permission for him to travel to Abu Dhabi from January 4th, spanning 1-4 weeks. The purpose was shrouded in mystery, centered around Zhao being present during the hospitalization, surgery, and recovery of an undisclosed individual.

SEC vs. Binance Showdown

The SEC vs. Binance lawsuit witnessed a heated court hearing on January 22, where Binance’s legal representative, Mathew Gregory, faced criticism from Federal Judge Jackson regarding attempts to dismiss the SEC’s complaint.

The SEC argues that Binance’s trading of crypto assets falls under its regulatory oversight, accusing the exchange of inflating trading volumes, diverting funds, and facilitating unregistered securities trading. Binance, posting a substantial $4.3 billion settlement with the Department of Justice in November, contends that the SEC is sending conflicting signals to the crypto industry.

CZ’s billion-dollar gamble denied. Do you think justice was served?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.