Changpeng Zhao Sentencing Guidelines Currently Uncertain About 3-Year Prison Range

Key Points:

• Binance’s Changpeng Zhao sentencing guidelines are being considered for money laundering violations, with the judge questioning a proposed three-year term.
• Zhao admitted guilt and stepped down from Binance in November, with the company agreeing to pay $4.3 billion in fines.

Binance founder Changpeng Zhao, commonly known as CZ, appeared in court today accompanied by his legal team, awaiting sentencing for violating US money laundering laws.

Changpeng Zhao Sentencing Guidelines Considered Amid Money Laundering Probe

Judge Richard Jones expressed skepticism regarding the Department of Justice’s (DOJ) request to increase the Changpeng Zhao sentencing guidelines from 18 months to 3 years, stating no evidence suggests CZ was informed of illicit activities.

The DOJ, however, argued CZ knowingly tapped into the US financial system and should face the consequences. They emphasized that despite CZ’s cooperation, the plea agreement already reflects any credit due. The DOJ highlighted the significance of enforcing the law, stating that if CZ escapes incarceration, it would undermine the Bank Secrecy Act’s effectiveness.

Meanwhile, the Binance founder’s defense argued against incarceration, citing the unprecedented nature of Changpeng Zhao sentencing in similar Bank Secrecy Act cases. CZ previously pleaded guilty and resigned from Binance, agreeing to pay hefty fines as part of a settlement with the US government.

Waived Appeals and a Fractional Fine

The case revolves around Binance’s alleged evasion of anti-money laundering regulations, enabling transactions by customers from sanctioned countries. Settlements with regulatory bodies were announced concurrently with CZ’s guilty plea.

The founder of Binance admitted guilt and resigned from his position in November as part of a settlement with the US Department of Justice. The agreement also required Binance to pay $4.3 billion in fines. In exchange, Zhao forfeited his right to appeal any sentence up to 18 months in prison. Additionally, he agreed to pay a $50 million fine, a nominal amount compared to his estimated $33 billion fortune.