Binance Founder Changpeng Zhao Is Now Stuck In The US

Key Points:

• Binance founder Changpeng Zhao’s bid to return to the UAE was rejected by the court despite offering $4.5 billion in Binance.US shares as collateral.
• A guilty plea for money laundering negligence brings a $4.3 billion fine.
• The new CEO, Richard Teng, prioritizes legal compliance and transparency.

According to CNBC, former Binance CEO Changpeng Zhao’s bid to return to the UAE has been rejected by the court, compelling him to remain on US soil until his sentencing on February 23, 2024.

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Binance Founder Changpeng Zhao’s Return Bid Rejected Amid Legal Turmoil

Binance founder Changpeng Zhao, as he is commonly known, sought permission to return for “hospitalization and surgery,” offering $4.5 billion worth of Binance.US shares as collateral to guarantee his return. However, the court dismissed his plea.

This development follows CZ’s guilty plea in November 2023, admitting negligence in preventing money laundering at Binance. As part of the settlement with the US Department of Justice, Binance faces a hefty $4.3 billion fine, cessation of US services, and oversight by US regulatory agencies. Binance founder Changpeng Zhao is required to step down as CEO, face a three-year ban from holding a managerial role, and potentially serve a US prison sentence.

Despite offering $175 million in bail and vowing to return, CZ’s request to reunite with his family in the UAE was rejected by prosecutors, fearing a flight risk due to assets outside US jurisdiction. The court sided with the prosecution, mandating CZ’s presence in the US until sentencing.

Since CZ’s resignation, new CEO Richard Teng has taken the reins, emphasizing Binance’s commitment to legal compliance and operational transparency. Speculation abounds regarding the influence of Yi He, Binance co-founder and close associate of CZ, raising questions about the actual leadership behind the exchange’s new chapter.