Changpeng ‘CZ’ Zhao faces reduced jail time as judge rejects DOJ request
The judge has diverged from DOJ’s 36-month proposal.
Some believe the judge is leaning towards a 10 to 16-month sentence.
Changpeng ‘CZ’ Zhao is accused of violating the Bank Secrecy Act.
In a pivotal turn of events, the sentencing hearing for Changpeng ‘CZ’ Zhao, the former CEO of Binance, has taken a surprising twist.
Judge Richard Jones has signalled a departure from the harsh sentencing proposed by the United States Department of Justice (DOJ), favouring a more lenient approach.
Judge Jones leans towards leniency
In the ongoing court hearing, Judge Jones expressed scepticism towards the DOJ’s push for a lengthy prison sentence, opting instead to align with the recommendation put forth by the Probation Office.
This recommendation suggests a jail term of 10 to 16 months for Zhao, a stark contrast to the 36 months sought by the DOJ.
Zhao’s guilty plea and community support
Zhao’s legal woes stem from a one-count charge of violating the Bank Secrecy Act, to which he pleaded guilty and resigned from Binance.US board.
After Changpeng ‘CZ’ Zhao’s admission of guilt, he garnered widespread support from the crypto community, with family and friends rallying behind him and sending letters of support.
What Zhao’s sentencing mean for Binance
The outcome of Zhao’s sentencing holds significant implications, particularly for Binance, the cryptocurrency exchange he co-founded.
With Zhao’s conviction potentially affecting the France outpost, where he maintains full ownership, Binance’s pursuit of a European License under Markets in Crypto Asset (MiCA) rules by 2025 could face hurdles.
