- On April 30, 2024, the court reached a verdict in the highly publicized case involving former Binance CEO Changpeng Zhao (CZ).
- CZ received a sentence of 4 months in prison.
- The charges against CZ included money laundering and violations of the Bank Secrecy Act.
The court proceedings were closely watched by the cryptocurrency community, as CZ was a prominent figure in the industry.
During the trial, the prosecution argued for a prison sentence, claiming that a more lenient punishment would set a dangerous precedent for others involved in similar illegal activities.
On the other hand, CZ’s defense team highlighted his cooperation with authorities throughout the investigation and his voluntary appearance in court. They also emphasized that CZ has stepped down from his role as CEO of Binance.
Comparisons were made to the case of Arthur Hayes, co-founder of BitMEX, who received probation and a fine after admitting guilt in a similar case.
CZ admitted his failure to implement proper KYC/AML procedures at Binance but expressed his efforts to rectify the situation and his willingness to cooperate with the US government.
Ultimately, the judge acknowledged CZ’s cooperation but held him accountable for his role as CEO. The verdict of 4 months in prison was given.
Following his guilty plea, CZ had resigned from his position at Binance in 2023 and had been released on bail.
The trial, originally scheduled for February 2024, was delayed, and CZ was prohibited from leaving the country.
Leading up to the verdict, CZ received letters of support from family and friends, and he publicly apologized for his actions.
The prosecution sought a longer prison term than originally agreed upon in the plea deal, citing the need for a stronger message to deter future illegal activities in the cryptocurrency industry.