Changpeng Zhao, aka CZ is the founder and former CEO of Binance, one of the world’s largest cryptocurrency exchanges. He awaits sentencing in a highly anticipated court hearing in Seattle that begins today.
The expectations
Legal experts have offered varying opinions on the possible outcome of the conviction.
Neama Rahmani, a former federal prosecutor, told CNBC he expects a sentence of one to two years to be imposed given the high profile of the case.
In contrast, Zhao’s team has requested a more lenient five-month trial period.
They highlight Zhao’s acceptance of responsibility and his history of philanthropy and community service. Also the significant time he has spent away from his family since he pleaded guilty was appointed.
In November, Zhao pleaded guilty to facilitating money laundering on the Binance platform.
This was a significant development in a case that has attracted attention for its alleged violations of US law and its implications for the cryptocurrency industry.
Expert opinions
As you have already read above, different expectations are huge.
Braden Perry is a former senior trial attorney for the Commodity Futures Trading Commission (CFTC).
He suggests a recommendation of 10 to 16 months under the sentencing guidelines, but believes Zhao’s guilty plea and multi-agency settlement could influence the judge’s decision.
Yesha Yadav, a law professor at Vanderbilt University, predicts a sentence in the low single digits, possibly with minimal jail time and extended probation.
Other legal experts, such as Tre Lovell, a corporate lawyer, expect a shorter sentence of five to seven months. They point to the lack of fraud charges against Zhao and his apologetic letter to the judge.
Paul Tuchmann, a former federal and state prosecutor, emphasizes the need for general deterrence in the crypto industry. He expects the DOJ will argue for a sentence that conveys the consequences of violating financial rules.
“Prison is an important deterrent,” said David Weinstein. Weinstein is a former federal and state prosecutor who now practices corporate compliance and white-collar defense at Jones Walker.
He added that the sentence would be over in less than a year.
In any case, the wait is over and it is now time to keep a close eye on what the case will do in the coming days.
Tags: Binance founders trial begins today Jail sentence discussed
