Binance Founder Changpeng Zhao Should Spend 3 Years in Prison, DOJ Says

Source: CoinDesk

Binance Founder Changpeng Zhao Should Spend 3 Years in Prison, DOJ Says

The DOJ wants Zhao to serve 36 months after his guilty plea last year.

By Nikhilesh De
Apr 24, 2024 at 1:43 a.m. EDT
Updated Apr 24, 2024 at 2:59 p.m. EDT

Binance's founder and former chief executive, Changpeng "CZ" Zhao, should spend three years in prison for his role in enabling the crypto exchange to violate federal sanctions and money laundering laws, the U.S. Department of Justice said Tuesday night. The former CEO's attorneys argued he should serve no jail time, citing the fine he paid and his "extraordinary acceptance of responsibility."

Attorneys with the DOJ filed a sentencing memo arguing he should spend 36 months in prison and pay a $50 million fine after he pleaded guilty to violating the Bank Secrecy Act last November. Hours later, Zhao's defense team filed its own sentencing memo, saying "no defendant in a remotely similar BSA case has ever been sentenced to incarceration." Instead, they suggested he be sentenced to probation, which could include home confinement at his home in Abu Dhabi.

"The sentence in this case will not just send a message to Zhao but also to the world. Zhao reaped vast rewards for his violation of U.S. law, and the price of that violation must be significant to effectively punish Zhao for his criminal acts and to deter others who are tempted to build fortunes and business empires by breaking U.S. law," the filing said.

Zhao originally faced up to 18 months in prison under the terms of his plea agreement. The DOJ argued in Tuesday's filing that "the scope and ramifications of Zhao's misconduct were massive," and so "an upward variance is appropriate here."

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Read more: https://www.coindesk.com/policy/2024/04/24/binance-founder-changpeng-zhao-should-spend-3-years-in-prison-doj-says/