Breaking: Changpeng ‘CZ’ Zhao Sentenced To 4 Months In Prison
The sentencing hearing of Binance co-founder and former CEO Changpeng ‘CZ’ Zhao has just wrapped up with with Judge Richard Jones sentencing him to 4 months in prison
Changpeng ‘CZ’ Zhao Gets Lenient Sentencing
According to the live account from the Court, Judge Richard Jones revealed before the sentencing that he does not agree with the 3 years sentence proposition from the US DOJ. The presiding Judge over the case said he rather aligns with the 10 – 16 months sentencing recommended by the Probation Office.
Surprisingly, he handed down a 4-month sentence much to the disappointment of prosecutors from the United States Department of Justice. This was after he clarified that no evidence supports the fact that CZ was ever informed of illegal activity. Eventually, Judge Jones’ argument led to the rejection of the DOJ’s push for an enhancement.
It has been more than five months since Changpeng ‘CZ’ Zhao pleaded guilty to a one-count charge of violating the Bank Secrecy Act (BSA). Binance even had to pay a settlement fee of $4.3 billion to the DOJ.
After stepping down as CEO of the top crypto exchange, CZ waived the right to appeal any jail term sentence up to 18 months. However, his case with the regulator has intensified with time.
Binance Facing Regulatory Challenges
The Binance Founder has gained support from the broader crypto community with family and friends sending him letters of support. His legal team had also asked that the crypto entrepreneur be pardoned without serving any term.
To make their argument, these lawyers cited that “no defendant in a remotely similar BSA [Bank Secrecy Act] case has ever been sentenced to incarceration.”
This hearing has a significant impact on the survival of major Binance entities like the France outpost where CZ holds a 100% stake. The conviction status of CZ may strain the exchange’s bid for a European License under Markets in Crypto Asset (MiCA) rules by 2025.
Binance is already facing regulatory challenges in other jurisdictions including Nigeria where some of its executives are being charged with some criminal offences. With a soft landing of four months, CZ and Binance may bounce back in no time.
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Filed under: News - @ January 1, 1970 12:00 am