Ex-Binance CEO, Changpeng Zhao, Seeks Probation Over Jail Time in Money Laundering Case
Summary:
Former Binance CEO Changpeng "CZ" Zhao has pleaded for probation, admitting to breaching anti-money laundering laws. His lawyers have proposed that he could serve his sentence at the Federal Detention Center in SeaTac and submitted several letters from associates in support of his plea. Zhao's sentence can extend up to 10 years, according to U.S. laws, but the prosecutors have suggested three years and a $50 million fine. Zhao, who has avoided public comment since his guilty plea, is to return to court for sentencing on April 30.
Changpeng "CZ" Zhao, the previous Chief Executive Officer (CEO) of Binance, has petitioned for probation rather than jail time, confessing to breaching laws against money laundering. His attorneys have submitted multiple statements endorsing their plea, with one proposal indicating that Zhao could be serving his imprisonment period at the Federal Detention Center (FDC) in SeaTac, Washington.
In a directive filed on April 23 in the U.S District Court for the Western District of Washington at Seattle, Robert Palmquist anticipates that, should he be sentenced to incarceration, Zhao will likely serve his term at FDC SeaTac. Palmquist was previously the chief of the facility in Washington from 2003 to 2009, and depicted the center as scarce in natural light with an insufficient workforce relative to the inmate population.
Palmquist claimed that if Zhao is detained, his status and fortune could enhance his vulnerability to dangers to his physical and emotional wellbeing. Fears of theft and coercion, encountering various security levels of offenders, and susceptibility to high-risk predators due to his unfamiliarity with prison dynamics and riches, were highlighted.
The facility in FDC Seatac, which contains 794 prisoners and is located south of the Seattle-Tacoma International Airport, has previously held an involved member from Proud Boys in the January 6, 2021 attack on the U.S. Capitol and ‘crypto-anarchist’ Jim Bell. Bell, freed in 2012, faced charges for tax fraud in the 90s associated with promoting annonymous payments for commissioning government officials' murders.
Several tokens of support from friends, kin, and corporate executives were presented by Zhao's legal representation to advocate for a gentler sentence. A verdict of federal imprisonment up to 10 years can be pronounced by a judge under U.S. sentencing regulations. However, in Zhao's specific case, there is a disposition for a term of 12 to 18 months. A sum of 3 years in prison and a penalty fee of $50 million has been called for by the prosecutors.
Following the verdict and sentencing of ex-FTX CEO Sam Bankman-Fried, CZ becomes one of the most prominent personalities in the cryptocurrency arena to appear in a federal court. Ex-CEO of Celsius, Alex Mashinsky, indicted with seven fraud offenses relating to securities and commodities is scheduled for trial in 2025.
With a $4.3 billion settlement between Binance and U.S. authorities, CZ has refrained from making any public comments on the charges, following his admission of guilt last November 2023. In a note to Judge Richard Jones from February 2, Zhao expressed remorse for his "ill-judged decisions" regarding Binance and expressed readiness to assume accountability for his actions.
Zhao, the former Binance CEO, is set to appear again in court on April 30 for his sentencing. Since his release on a $175 million bond in November, he has been allowed to travel within some regions of the U.S.
Published At
4/25/2024 12:07:29 AM
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