Binance Founder Addresses DOJ’s Request for 36-Month Prison Sentence

The U.S. Department of Justice (DOJ) has submitted its sentencing memorandum in the case against Changpeng “CZ” Zhao, the founder and former CEO of Binance.
According to the latest filing, the DOJ is recommending that Judge Richard A. Jones of the Washington federal court sentence CZ to three years in prison and impose a $50 million fine for his violation of U.S. money laundering regulations.
Prosecutors also argue that Zhao played a significant role in allowing Binance to violate federal sanctions. However, CZ’s legal team filed a response a few hours later, stating that the former Binance executive should not be sentenced to prison but rather be given probation.
DOJ Seeks Longer Prison Term for Binance Founder
In November 2023, Binance pleaded guilty to violating U.S. money laundering laws and agreed to pay $4.3 billion as part of a settlement. CZ also pleaded guilty to charges related to money laundering brought by the DOJ.
As per the plea agreement, CZ initially faced a maximum sentence of 18 months in prison and a $50 million fine. He also stepped down as CEO of Binance. However, the DOJ is now seeking to extend the prison sentence to three years. They argue that CZ not only knew about the money laundering violations at Binance but also encouraged them.
Prosecutors claim that the Binance founder benefited greatly from the exchange’s violations of U.S. laws and recommend that he face a significant penalty for it.
By imposing a three-year prison sentence and a $50 million fine, the DOJ believes that the court would send a strong warning to CZ and potential violators around the world.
It is worth noting that the DOJ alleges that CZ’s failure to implement effective anti-money laundering protocols at Binance allowed criminals to conduct illicit transactions through the largest cryptocurrency exchange by trading volume.
CZ’s Lawyers Request Probation
On the other hand, CZ’s defense team argues that their client had no knowledge of any criminal transactions taking place on the platform.
They contend that despite Binance’s compliance officer informing CZ about users from U.S.-sanctioned countries, the exchange was never prohibited from onboarding users from those nations as Binance is a non-U.S. exchange.
Furthermore, CZ’s lawyers emphasize that the charges Binance pleaded guilty to were a result of the exchange’s system automatically pairing users from U.S.-sanctioned countries with other U.S.-based clients.
However, they point out that these transactions only represent a small portion of Binance’s overall volume. Therefore, CZ’s lawyers request that Judge Jones not impose a three-year prison sentence but instead sentence their client to probation, with confinement in his Abu Dhabi home.
In the meantime, CZ, along with over 160 individuals including family and friends, have written letters to the judge asking for leniency.
The highly anticipated sentencing of the former Binance CEO was initially set for February 2024, but it has been postponed to April 30 by mutual agreement.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are the author’s own and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.