Binance CEO CZ Sentenced to Four Months in Prison, BNB Drops Binance's CEO Changpeng Zhao has been sentenced to four months in prison.
CZ Set to Spend Four Months in Prison
After pleading guilty to one count of violating the Bank Secrecy Act earlier in November 2023, the former Binance CEO in the person of Changpeng Zhao was sentenced to four months in prison by Judge Richard Jones for failure to establish robust anti-money laundering procedures. The judge rejected the DoJ's 36-month sentence request to reach to the decision. He said, "There needs to be an effort by this court to impose a sentence that's appropriate and reasonable."
Considering Changpeng Zhao pleaded guilty and cooperated with authorities, the Federal sentencing guidelines set a maximum sentence of 18 months — under normal circumstances, such a charge would carry up to 10 years in prison.
The Department of Justice requested a three-year sentence, arguing that the Binance founder willfully allowed illegal trades on the world's renowned crypto exchange Binance, failed to report thousands of suspicious criminal activities and garnered profits of around $1.6 billion from such transactions. In contrast, CZ's team requested probation and proposed house arrest as an option.
After the court hearing, Judge Richard Jones disagreed with the DoJ's request to extend the sentence to three years, stating, "There's no evidence that the defendant was ever informed of illegal activity," . In response, the Department of Justice argued that CZ was aware of illicit activity.
While the judge seemed to agree with the 10-16 months prison sentence and 1-3 years supervised release recommended by the Probation Office, the Department of Justice attorney argued otherwise. The Department of Justice stated that it would serve as an incentive for others to break the law on a large scale.
The defense attorney reiterated CZ's and Binance's compliance throughout the process. Binance agreed to pay $4.3 billion in fines, while CZ would pay $50 million — a fraction of his $33 billion net worth, according to Forbes.
After several exchanges, the judge rejected the DoJ's request for three years and sentenced CZ to four months in prison.
CZ's sentencing comes off the back of former FTX CEO Sam Bankman-Fried’s 25-year prison sentence for his role in the collapse of the FTX exchange.
In the forgeoing lawsuit, CRYPTOCAP:BNB is showing recovery signs after bouncing from a low of $556.20 to $570.60.
The general crypto market is gearing up to the news, considering CZ's and Binance's wide influence in the space. Many expect the crypto market to see a slight recovery from recent dumps following CZ's short sentence.
