DOJ Recommends 3-Year Prison Sentence for Binance Founder CZ: Defense Seeks Probation
The U.S. Department of Justice (DOJ) has recommended a three-year prison sentence and a $50 million fine for Binance founder and former CEO Changpeng “CZ” Zhao for violating U.S. money laundering rules. Prosecutors argue that Zhao played a significant role in enabling Binance to violate federal sanctions. However, Zhao’s attorneys are pushing for probation instead of jail time.
In November 2023, Binance pleaded guilty to money laundering charges and agreed to pay $4.3 billion as part of a settlement. Zhao also pleaded guilty to related charges and initially faced 18 months in prison and a $50 million fine. The DOJ now wants to extend his sentence to three years, claiming he knew about and encouraged Binance’s violations.
Zhao’s defense team argues that he had no knowledge of criminal transactions on the platform and that Binance’s compliance officer never prohibited users from U.S.-sanctioned countries. They are seeking probation for Zhao, suggesting confinement in his Abu Dhabi home.
The sentencing hearing, initially set for February 2024, has been postponed to April 30. Over 160 people, including Zhao’s family and friends, have written letters to the judge seeking leniency. The outcome of this high-profile case will have significant implications for the cryptocurrency industry globally.
