Prosecutors from the United States Department of Justice recommended to the court handling the case against the former CEO of Binance, Changpeng Zhao , that he sentence the businessman to 3 years in prison and not 18 months for the crimes he committed. committed.
In a sentencing memorandum presented yesterday, prosecutors, representing the American State, indicated that a sentence of 36 months behind bars is appropriate for Zhao, whom they accuse of having deliberately violated the laws of that country.
In the opinion of prosecutors, a sentence of 36 months, which is double what was anticipated, could “reflect the significant damage to the national security of the United States” caused “by the criminal actions” of CZ , who founded Binance in 2017.
The sentence, furthermore, “would reflect the seriousness of the crime, promote respect for the law, provide adequate deterrence, and be sufficient, but not greater than necessary, to achieve the objectives of the sentence.”
In November 2023, Changpeng Zhao pleaded guilty to several crimes, including money laundering and violating the laws of the United States. An action “that was neither an accident nor an oversight,” but a “decision by Zhao to attract users, build his company and line his pockets,” US prosecutors allege.
After declaring his responsibility, CZ ceased his operations at the head of Binance and, in addition, had to pay a personal fine of USD 50 million. The exchange, for its part, was fined $4.3 billion , the largest fine ever imposed by the US on a cryptocurrency company .
Since then, Zhao has been waiting for his sentencing hearing, which should be held on April 30. He provided the moment for Justice Department prosecutors to recommend extending the planned prison term , from 1 and a half years (18 months), to 3 years in prison.
According to prosecutors, a sentence of this size will not only send a message to Zhao, “but also to the world.”
On the eve of the sentencing and in the midst of the request from US prosecutors, Changpeng Zhao sent a letter to US Judge for the Western District of Washington, Richard A. Jones, in which he regrets what happened and takes full responsibility for his actions. acts.
According to the local press, Zhao said that there is no excuse for him not to have established the necessary compliance controls on Binance, thus coinciding with the claims of prosecutors. As the exchange's former CEO sees it, this will be his “only encounter with the criminal justice system.”
Zhao's defense also sent a sentencing memorandum to the court stating that the businessman "still deserves to be sentenced based on the facts of his case and his personal circumstances."
In the letter, they recognize Zhao as “a non-violent offender who committed a crime, for the first time, without the intention of harming anyone.” According to the lawyers, he “does not present a risk of recidivism.”
“The court should go further and reflect additional and crucial factors. It is extremely rare (if ever) for a first-time offender with a rank comparable to Mr. Zhao to be sentenced to a prison term after pleading guilty, especially before indictment. He would face harsher and more dangerous confinement conditions than a US citizen in a similar situation.” Lawyers for Changpeng Zhao, former CEO of Binance.
The defenders also argued that the cases preceding the violation of US laws, more precisely that of bank secrecy, point to a sentence of probation.
Therefore, they believe that a probation sentence “is fair and appropriate.” A sentence “no greater than necessary to achieve the objectives of sentencing Mr. Zhao as an individual, based on the totality of the facts and circumstances,” CZ attorneys say.
