Speculations are rife in the crypto market as the sentencing of former Binance CEO Changpeng Zhao looms. Dubbed CZ in the industry, Zhao’s potential prison term of up to 36 months has stirred discussions in the crypto market. 

Meanwhile, as the hearing commences later today, the outcome remains uncertain, with prosecutors pushing for a sentence twice the recommended federal guidelines. Notably, the case highlights the growing scrutiny on crypto executives amidst regulatory crackdowns.

Binance’s Changpeng Zhao To Face Prison Time?

The looming sentencing of Changpeng Zhao, former CEO of Binance, has sent shockwaves through the crypto community. Despite his guilty plea to violating U.S. money-laundering laws, prosecutors are advocating for a harsher penalty, aiming to set a precedent in light of Zhao’s high-profile stature. 

According to a recent report from Reuters, the former Binance executive could face a prison time of around 36 months, which has sparked speculations in the market. Notably, Robert Fisher, a former federal prosecutor, expressed surprise at the severity of the proposed sentence for CZ, suggesting it serves as a deterrent to others in the industry.

Meanwhile, the prosecutor’s request for an extended sentence of twice the initially recommended 18-month timeline above federal guidelines underscores their intent to send a clear message about regulatory compliance. Despite Zhao’s plea and his payment of a hefty fine, they seek to demonstrate the consequences of flouting the law in the cryptocurrency sphere. 

With the hearing slated to commence later today, all eyes are on the outcome and its potential ramifications for the industry.

Also Read: Why Bitcoin Price Is Falling Suddenly?

Prison Sentencing Or A Probation Ahead?

Changpeng Zhao’s case is not an isolated incident but rather emblematic of the regulatory crackdown facing the crypto sector. Following the recent sentencing of Sam Bankman-Fried or SBF, another prominent figure in the industry, for fraudulent activities, authorities are intensifying their scrutiny. 

Meanwhile, the collapse of crypto prices in 2022 has laid bare instances of fraud and misconduct, prompting a concerted effort to hold accountable those responsible. As the legal proceedings unfold, the fate of Zhao and others embroiled in similar controversies remains uncertain, signaling a pivotal moment for the future of crypto regulation.

As the legal battle surrounding Binance founder Changpeng Zhao intensifies, speculation mounts over the potential outcome of his sentencing. According to data from Polymarket, a significant portion of observers anticipates a lesser sentence for Zhao, with 55% betting on a CZ’s prison term of fewer than 6 months. Besides, only 8% foresee a harsher sentence exceeding 36 months, while a mere 3% predict a term ranging from 30 to 35 months.

Meanwhile, in a bid for leniency, Zhao’s defense team has previously pleaded for CZ’s probation, focusing on his status as a first-time, non-violent offender and citing factors such as community support. An earlier report from CoinGape Media showed that despite prosecutors’ push for a 36-month prison term, Zhao’s attorneys argue for probation, pointing to various mitigating circumstances.

However, it’s worth noting that more than 31,000 people are supporting CZ for his contribution and positive impact on the broader crypto industry. Notably, according to AlphaorBeta, around 81% of the 40,658 people have supported for CZ’s justice, while only 19% of the people put their bets against it.

Also Read: Top Reasons Why US Bank Republic First Bank Collapsed

The post Binance Founder Changpeng Zhao To Face Probation Or 3-Year Prison Sentence? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am