- The US Department of Justice recently submitted a memorandum proposing the sentence for Changpeng Zhao, the former CEO of Binance.
- Prosecutors are seeking a 36-month prison term for Zhao, accompanied by a hefty $50 million fine.
- The severity of CZ’s offense is cited as the reason for this recommended sentence.
- The court will make its final decision on April 30 regarding the case.
In a memorandum sent to the court, the US Department of Justice has called for the former CEO of Binance, Changpeng Zhao (CZ), to be sentenced to three years in prison. Alongside the prison term, CZ may also face a fine of $50 million.
“Given the magnitude of the willful violation of US law and its consequences, a sentence of 36 months [three years] is warranted,” the memorandum states.
The document further elaborates:
“Such a verdict will send a signal not only to Zhao, but to the entire world. He amassed significant profits from his crime, and the cost must be significant in order to not only punish CZ but also serve as a deterrent for those tempted to build their business empires by violating American law.”
It is worth noting that initially, CZ faced a potential sentence of 18 months in prison. The Department of Justice reiterated this in its appeal, emphasizing that the recommended sentence for such charges typically falls between 12 to 18 months.
However, due to the gravity of the offense, the prosecutors believe that a longer term is warranted.
As a reminder, Changpeng Zhao pled guilty to facilitating money laundering through Binance and resigned as the CEO of the company in the autumn of 2023.
While CZ has been released on bail amounting to $175 million, he has been restricted from leaving the United States. The final verdict in his case is expected to be announced on April 30, 2024.
Binance co-founder Yi He, who is currently in a relationship with CZ, previously expressed that he remains optimistic about the upcoming trial.