- Binance founder CZ might serve a longer prison sentence.
- This comes after prosecutors filed a sentencing memo.
- The prosecutors want CZ to serve a “meaningful” sentence and pay a hefty fine.
Prosecutors in the Changpeng Zhao (CZ) case have asked the U.S. District Court for the Western District of Washington to sentence the crypto mogul to 36 months in prison.
Following his admission of guilt for violating anti-money laundering laws, CZ made the decision to step down as Binance CEO in November last year. This move was part of a plea deal that also involved Binance agreeing to a substantial $4.3 billion fine and the appointment of a court monitor.
CZ’s Sentencing Memo
In a recent sentencing memo filed by the U.S. Department of Justice (DOJ), government lawyers asked the court to slap Changpeng Zhao with a custodial sentence that “would achieve specific and general deterrence.”
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“If Zhao’s sentence is to have any meaningful deterrent effect on similarly situated executives of large financial institutions that operate in the United States while flouting U.S. law in the name of profits, Zhao must face meaningful prison time.” The document read.
Specifically, the prosecutors requested that the crypto mogul be sentenced to three years in prison and fined $50 million.
While CZ originally faced up to 18 months imprisonment as provided by the Federal sentencing guidelines and terms of his plea deal, the prosecutors argued that “the scope and ramifications of Zhao’s misconduct were massive,” warranting an upward variance.
CZ was set to be sentenced in February, but the hearing was postponed to April 30 after the defense and prosecution reached a mutual agreement. The former CEO hasn’t been able to return to Dubai since his first appearance in federal court in Seattle last year.
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