- Binance founder Changpeng “CZ” Zhao has been sentenced to four months in prison for violating US anti-money laundering laws.
- US prosecutors were pushing for a longer sentence “to reflect the seriousness of the offence,” but Judge Richard Jones said CZ’s behaviour was mitigating and positive.
Binance founder and former CEO Changpeng “CZ” Zhao has been sentenced to four months in prison for failing to implement sufficient anti-money laundering protections while at the helm of the exchange.
Judge Richard A. Jones delivered his ruling in a jam-packed court in Seattle. “There needs to be an effort by this court to impose a sentence that’s appropriate and reasonable,” Judge Jones stated.
The US prosecutors were the first to deliver their arguments early on. Led by Kevin Mosley, they called for a harsher sentence than is recommended for AML violations to match “the brazenness and magnitude of the crime.”
Mosley told the court:
Incarceration is necessary to reflect the seriousness of the offense. The brazen nature of this conduct does require a sentence that includes a meaningful period of incarceration.
In his defence, CZ’s lawyers pointed out that he had been cooperating with the US government since the investigation into his exchange started. Further, the defence attorney noted that he had only pled guilty to the AML violations, cautioning the prosecutors against their constant mention of sanctions violations.
CZ, dressed in a navy blue suit and a light blue tie, listened intently with a defeated expression as the two sides went head-to-head. In the end, Judge Jones decided to ignore the prosecutors’ plea for a long sentence, claiming that CZ’s behaviour had shown he was remorseful.
The judge stated:
Everything I see about your history and characteristics are of a mitigating nature and a positive nature.
However, his remorse wasn’t enough, and he’d have to serve time in prison for his crime. In particular, the judge said he was deeply troubled by claims that CZ once stated “it was better to ask for forgiveness than permission.”
CZ now awaits a reporting date to present himself for his imprisonment.
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