Crucial Moments for BNB: Binance Founder CZ’s Sentencing Hearing Begins – Here are the LIVE Developments

Changpeng Zhao, founder of cryptocurrency exchange Binance, will learn his fate today regarding possible prison time for violating US money laundering laws. Prosecutors sought a three-year prison sentence, twice the 18-month sentencing guideline. They argue that “the scope and consequences of Zhao’s misconduct were enormous,” the sentencing memo states.

In response, Zhao’s legal team argues that their client does not deserve a prison sentence. They pointed out that “no defendant has ever been sentenced to prison in a similar BSA (Bank Secrecy Act) case.”

Zhao pleaded guilty and resigned from his position at Binance as part of a settlement with the US Department of Justice in November. In addition, Binance agreed to pay a staggering $4.3 billion fine. As part of the agreement, Zhao waived his right to appeal a sentence of up to 18 months in prison. He also agreed to pay a personal fine of $50 million, a relatively small amount compared to his estimated $33 billion fortune.

The US government accused Binance of knowingly evading anti-money laundering regulations. This avoidance allegedly allowed customers from Iran, Cuba and Syria to conduct transactions in violation of U.S. sanctions. The settlements with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) were announced simultaneously with Zhao’s guilty plea.

Related News: Former Binance CEO CZ’s Sentence Will Be Announced Tomorrow: Here are Estimates on How Much He Will Receive

Here are all the developments of CZ’s case today, which will be updated live:

It’s a relatively quiet morning in Seattle. Unlike the Sam Bankman-Fried case, public interest in the sentencing of Binance founder Changpeng Zhao appears to be low.
CZ came to court. There is activity in the courtroom.
CZ wears a dark blue suit and stands out with his distinctive blunt cut.
The hearing was postponed to 19:30 Turkish time (UTC+3) due to a personal reason of the judge, the judge is waiting.
The hearing where CZ’s sentence will be determined has started. Judge Richard A. Jones took the stand.
Judge Richard Jones said he did not accept the Ministry of Justice’s request for a sentence increase that would increase CZ’s sentence from 18 months to 3 years: There is no evidence that the defendant (CZ) was aware of the illegal activities.
The Justice Department lawyer argued that the judge should have been able to conclude that CZ was aware of the illegal activities, citing a previous case in which the judge concluded that a defendant was aware of the illegal activities.
In his speech, the judge largely agreed with the Probation Office. CZ is believed to have a crime level of “12,” which would mean 10-16 months in prison and 1-3 years of probation.
Justice Department lawyer: CZ intentionally sought to abuse the US financial system. “Breaking the law was an integral part of this effort; we’re not speculating here, Mr. Zhao said so himself.”
The Justice Department lawyer said CZ deserved credit for turning himself in, but that credit was reflected in the plea agreement.
Justice Department lawyers: “If Mr. Zhao is not sentenced to prison after conspiring to knowingly and willfully violate U.S. laws to build the world’s largest crypto exchange and get rich in the process, then no one will be sentenced to prison and the Bank Secrecy Act will be, for all intents and purposes, a blank slate.” .”
Mr. Zhao and Binance promoted compliance improvements but this happened after Binance was caught for not complying with the compliance program, this is what you should do, it is commendable but does not deserve a probation sentence here.
“CZ chose to take advantage of the U.S. financial system,” the Justice Department lawyer said. “A probation sentence here would encourage others to break the law and do so on the largest possible scale,” the Justice Department attorney said before being sentenced to a “meaningful” prison sentence.
Judge: Your suggestion is to impose a double sentence; Wouldn’t this lead to inequality of punishment? Department of Justice: No defendant has ever been responsible for so much; “We don’t believe this will be an inequality of sentencing, the inequality is in the magnitude of the behavior.”
The judge remains skeptical of the Justice Department’s arguments for a longer sentence, asking specific authorities and other questions. The Justice Department attorney continues to say the sentence should reflect the magnitude of the crime.
Now a different defense attorney said CZ’s mother, son, nephew and sister attended the hearing. Pointing to letters of support, he said CZ is coming to the United States. He made a comparison with another case in which he spent 4.5 years trying to extradite a defendant: “CZ didn’t do that. He chose to come here.”
The probation officer reiterated his 5-month recommendation, saying house arrest should be in the United States if not incarcerated.

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*This is not investment advice.

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