The U.S. Department of Justice isn’t just aiming for Changpeng “CZ” Zhao, the influential figure behind Binance, to spend three years behind bars; they’re also seeking a hefty $50 million fine. CZ’s defence is pushing back, advocating for probation instead of incarceration, citing his significant cooperation and payment of a substantial fine.
Following the DOJ’s proposal for a 36-month prison term, CZ’s legal team swiftly responded, arguing that no one in similar circumstances has been imprisoned for such charges before. They propose probation, which would allow CZ to remain in Abu Dhabi.
The DOJ asserts that the severe penalty serves as a warning against unlawful profiteering, emphasising CZ’s alleged facilitation of federal sanctions violations and money laundering through Binance. Originally facing up to 18 months under a plea deal, CZ now faces an extended sentence due to his purported failure to prevent Binance from engaging in illicit activities.
Disputes between CZ’s defence and the DOJ centre on whether CZ was aware of the specifics of the illicit transactions on Binance. While the DOJ claims CZ was complicit, his defence maintains he was unaware of the extent of the wrongdoing, with only a small fraction of Binance’s operations involving questionable transactions.
Furthermore, CZ’s defence argues against imprisonment, emphasising his low likelihood of reoffending and advocating for probation to minimise further disruption to his life. Notable figures, including former U.S. Senator Max Baucus, support CZ, challenging portrayals of him as a villain.
As legal proceedings unfold, CZ remains unable to return to Dubai to be with his family due to DOJ restrictions. Meanwhile, Binance faces its own penalties, agreeing to a $4.3 billion fine and court oversight.
With a showdown scheduled for April 30, CZ and his legal team are hopeful to sway authorities towards probation instead of imprisonment.
