Binance founder Changpeng Zhao sentenced to four months in prison following a plea deal
Changpeng “CZ” Zhao’s verdict is in. You guessed it correctly. The US Justice Department would not allow him go unpunished. According to sources, Binance’s founder and former CEO has received a four-month prison sentence. What was his offense, you ask? Let us tell you everything about it.
CZ is going to prison.
Changpeng “CZ” Zhao, the Binance cryptocurrency exchange’s founder and former CEO, has been sentenced to four months in prison, according to sources on Tuesday. U.S. Judge Richard Jones immediately voiced doubt during a hearing of the Department of Justice’s
Arguments for a longer sentence.
BREAKING: Binance founder Changpeng Zhao (CZ) has been sentenced to four months in prison. pic.twitter.com/M22cVqL1BM
The Kobeissi Letter (@KobeissiLetter), April 30, 2024.
Prosecutors proposed that the former Binance CEO get a three-year term for failing to maintain an adequate Anti-Money Laundering (AML) program while at the cryptocurrency exchange. He pled guilty to the charge in November. CZ’s attorneys have requested probation on his behalf.
According to hearing accounts, Judge Jones declared unequivocally that there was no evidence that CZ was made aware of any specific criminal acts at Binance. In response to the prosecutors’ request to lengthen the sentence from 18 months to three years, the court stated his dissatisfaction.
During the closing arguments, the government’s attorneys said that CZ’s approach at Binance appeared to favor begging forgiveness over permission. They argued that he shouldn’t be allowed to profit from his acts.
There is no evidence that the defendant was ever told. The court determines that the defendant has taken responsibility. Everything I observe about you and your characteristics is favourable.
U.S. District Court for the Western District of Washington, Judge Richard Jones
Zhao’s mother, sister, nephew, and son were in court with him as he received his sentence, dressed in a navy blue suit and light blue tie. Zhao had buzz-cut hair. Zhao agreed to pay a $50 million fine in his plea bargain from last year, which represented a small part of his entire net wealth.
The crypto community reacted to his sentence.
Lawyers for Zhao claimed hidden evidence in court filings as a crucial element for the judge to consider during the sentencing proceedings. His legal team argued that Judge Jones may perhaps impose a probation period of less than six months, citing concerns about his wealth, which makes him vulnerable in a jail environment.
Incarceration is required to represent the seriousness of the offense. A probationary sentence here will encourage others to transgress the law on the broadest extent imaginable.
Kevin Mosley (from the prosecution side)
Prior to his sentencing, CZ accepted guilt and claimed to have “had a lot of quiet time alone to think and reflect.” He also admitted to assuming responsibility for Binance’s failure to implement a functional AML mechanism.
I believe that the first step in accepting responsibility is to openly acknowledge the mistakes. I neglected to completely establish a [know-your-customer program] I also appreciate the necessity of a strong KYC/[anti-money laundering] program. That’s why I directed Binance to comply with the US probe.
CZ
The hearing was originally planned for February, but was rescheduled after former FTX CEO Sam Bankman-Fried was sentenced in November on seven felony charges. Bankman-Fried was sentenced to 25 years in jail; however, his legal team has filed a notice of appeal for both the conviction and the sentence.
He knew his own fate all along. pic.twitter.com/J7MYCj6Cwx
Kris Kay | DeFi Donut (@thekriskay). April 30, 2024.
Attendees at CZ’s hearing noticed that the event did not receive as much attention as Bankman-Fried’s trial or sentencing, which drew enormous lines outside the New York City courthouse.
Lawyers for the Justice Department also objected to making analogies between the two individuals involved in the crypto case, arguing that the focus should be on the substance of the crimes rather than their personal traits.
It is worth noting that Zhao worked with the US government, according to a defense attorney, who highlighted that this collaboration is well-documented and even recognized by the DOJ.