Binance Founder CZ Faces Potential 10-Year Prison Sentence, Says DOJ
The Department of Justice (DOJ) has stated that Binance founder Changpeng Zhao (CZ) could potentially face a prison sentence of up to ten years following the recent legal settlement involving his exchange. The DOJ’s statement comes as the debate continues regarding whether CZ poses a “flight risk” and should be required to remain in the United States while awaiting his bail term. While CZ’s lawyers have argued that his sentence will be brief and he has no reason to flee, the DOJ suggests that his sentence could be longer than anticipated.
DOJ Highlights Possibility of Lengthy Sentence
The DOJ’s filing states that the top end of the sentencing guidelines range could be as high as 18 months, with the United States having the ability to argue for a sentence of up to ten years. This contradicts CZ’s attorneys’ claims that his sentence will be short.
Judge Grants CZ Bail and Travel Privileges
Last week, Magistrate Judge Brian Tsuchida granted CZ release from custody on a $175 million personal recognizance bond. He also permitted CZ to spend his term in the United Arab Emirates (UAE) until 14 days prior to his sentencing on February 23, 2024.
DOJ Raises Concerns Over Bond Agreement
The DOJ has criticized the bond agreement, stating that they would be unable to secure the bond if CZ were to leave the country due to most of his assets being located outside of the United States.
The Defense Argues for Family Time
CZ’s attorneys have argued that forcing him to stay in the United States would prevent him from spending time with his family before his sentencing. However, the DOJ sees this as a reason why CZ may view his sentence as more significant and therefore have a greater incentive to flee.
DOJ Highlights CZ’s Ties to the UAE
The DOJ points out that CZ has stronger ties to the UAE, including wealth, citizenship, and family. Additionally, the UAE does not have an extradition treaty with the United States, making it unlikely that CZ would be handed over if he chose not to return for sentencing.
Binance Founder Steps Down as CEO
CZ resigned as the CEO of Binance after pleading guilty to anti-money laundering and sanctions violations. He personally faced a fine of $50 million, while Binance will be required to pay $4.3 billion in penalties, marking the largest enforcement action against a cryptocurrency platform.
Hot Take: Binance Founder Faces Potential Lengthy Sentence
The Department of Justice’s filing indicates that Binance founder Changpeng Zhao (CZ) could potentially receive a prison sentence of up to ten years following his exchange’s recent legal settlement. This news adds to the ongoing debate surrounding CZ’s potential flight risk and whether he should remain in the United States during his bail term. While CZ’s lawyers claim his sentence will be brief, the DOJ suggests it could be longer. The bond agreement is also under scrutiny, and concerns have been raised about CZ’s ties to the UAE, where extradition is unlikely. Overall, this development emphasizes the potential severity of CZ’s legal situation.
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