Federal authorities have prohibited Changpeng Zhao, the former CEO of Binance, from traveling to his home in the United Arab Emirates (UAE) despite offering his $4.5 billion worth of Binance equity as collateral. The travel request was made in light of a medical emergency involving a close associate, the details of which remain undisclosed.
Zhao’s legal team sought permission from Judge Richard Jones to allow him to travel to Abu Dhabi in early January for one to four weeks. However, the request has not been granted as of now.
Medical emergency raises concerns
Changpeng Zhao, commonly known as CZ in the crypto community, has been embroiled in a legal battle with federal authorities. A recent court filing revealed that he had been barred from traveling to his residence in the UAE due to an undisclosed medical emergency involving a close associate.
While Zhao’s lawyers presented the situation’s urgency as the primary reason for his travel request, federal prosecutors have not yet approved it.
The court filing did not provide specifics regarding the identity of the individual needing medical attention or the nature of the medical condition. This lack of information has led to heightened speculation and uncertainty surrounding the case.
This isn’t the first time Changpeng Zhao has sought permission to travel to his home in the UAE amidst ongoing legal proceedings. According to WhaleWire, a crypto analytics platform, this marks the fourth such request.
The platform has raised serious allegations against Zhao, suggesting that he might attempt to evade authorities and disappear amid investigations into what they describe as a “massive fraud scheme.”
WhaleWire has been critical of the $4.5 billion in Binance equity that Zhao offered as collateral for his travel request, questioning its authenticity and alleging that it might be linked to fraudulent activities such as wash trading.
Ongoing legal battles for Binance
The denial of Changpeng Zhao’s travel request comes in the wake of a series of legal challenges faced by Binance, the cryptocurrency exchange he co-founded. The recent Binance-SEC court hearing garnered significant attention as Binance’s legal team criticized the Securities and Exchange Commission’s (SEC) stance on cryptocurrency regulation.
In addition to the lawsuit filed by the SEC, developments have involved a guilty plea and Changpeng Zhao’s resignation from his position as CEO. These events have shaken the cryptocurrency community and raised concerns about the future of one of the world’s largest cryptocurrency exchanges.
