Binance Founder CZ Asks For Leniency For His 3-Year Prison Sentence

Key Points:

• Binance founder CZ apologizes for compliance lapses before the sentencing on April 30th.
• The U.S. DOJ recommends a 36-month prison term for Zhao amid influential support for leniency.
• Binance’s guilty plea underscores growing regulatory scrutiny in crypto; Zhao faces a potential double sentence.

Changpeng Zhao, the founder and former CEO of Binance, has issued an apology to the court, taking responsibility for his actions and expressing regret for his poor decisions.

Binance Founder CZ Apologizes Ahead of Sentencing

This comes ahead of his scheduled sentencing on April 30, following a settlement reached with the United States Department of Justice in November 2023.

In a letter submitted to the judge, Binance founder CZ admitted to shortcomings in establishing compliance controls at the exchange. He also conveyed his intention to support biotech startups and youth initiatives moving forward.

Binance’s Guilty Plea Highlights Cryptocurrency Regulation Challenges

According to CoinDesk, alongside Zhao’s letter, a total of 161 other letters, including those from prominent figures such as former U.S. Ambassador to China Max S. Baucus and members of the royal family of the United Arab Emirates, have been submitted in support of leniency for Zhao.

The U.S. Department of Justice has recommended a 36-month prison sentence for Zhao, emphasizing the significance of the penalty in deterring similar violations and sending a message globally. This recommendation follows Binance’s guilty plea to anti-money-laundering and sanctions violations, resulting in substantial penalties and regulatory oversight, as reported by Reuters.

While Zhao’s legal team has argued for probation instead of prison time, citing a lack of precedent for incarceration in similar cases, the proposed sentence marks a significant increase from previous expectations. Binance founder CZ faces a potentially doubled term from what was initially anticipated.