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The founder of crypto exchange Binance, Changpeng Zhao (CZ), will have to wait longer to hear the outcome of his money laundering case. This happened after a US court notice on Monday postponed the charge until April 30.
Breaking News: U.S. DOJ Reveals That Prosecutors May Argue That CZ Should Be Sentenced To 10 Years In Prison
The U.S. Department of Justice (DOJ) charged ChangPeng Zhao (CZ) with, and CZ pled guilty to, one count of violating the Bank Secrecy Act. The charge stems from a mammoth… pic.twitter.com/gJ5EsB082Q— John Reed Stark (@JohnReedStark) November 26, 2023
CZ was due for sentencing on February 23 and was expected to face a jail term of up to 18 months. The former Binance CEO is currently out on a $175 million bond and is barred from travelling outside the US.
The Binance founder accepted violating the American anti-money laundering rules while in charge of the exchange he founded. The exchange agreed to pay $4.3 billion, resolving the criminal case with the US Justice Department. CZ was also forced to resign as the CEO of Binance while a personal criminal charge was considered against him.
Could face higher charges of up to 10 years imprisonment
While federal sentencing guidelines stipulate a maximum jail of 18 months for CZ, prosecutors are allegedly considering a harsher sentencing for the former Binance chief. According to the recent DOJ filing, the US is free to argue for any sentence up to an allowed time of ten years.
The stance comes even as the US considers CZ a flight risk. The DOJ differed with an earlier court decision that allowed him to reside in the UAE and only return to the US as the sentencing draws closer. Should the prosecutors consider a harsher sentencing, CZ is expected to stay in US prisons for as much as ten years.
Former US SEC official John Reed differs from the prosecutors’ stance. He says CZ could get a 12-18 month sentence under the sentencing guidelines. Reed also projects that CZ’s legal team may seek an alternative sentence that includes home detention and probation.
The post Binance's CZ sentencing drama takes centre stage as case delayed until April appeared first on Invezz
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