Binance Founder CZ’s Trial Begins Today: Lawyers Discuss Potential Prison Time

Qiao Changpeng, also known as CZ, the founder and former CEO of Binance, one of the largest cryptocurrency exchanges, will speak at a highly anticipated court hearing in Seattle scheduled to begin on Tuesday. is awaiting the verdict.

November, Zhao plead guilty The move, which allows money laundering on the Binance platform, marks a significant development in a case that has garnered attention for its alleged violations of U.S. law and its impact on the cryptocurrency industry.

Former prosecutor gives opinion on sentencing

As Bitcoinist previously reported, prosecutors submitted a sentencing memorandum for Zhao asking for three years in prison, twice the maximum recommended guidelines. They claim his crimes violate U.S. law on an unprecedented scale.

By contrast, Mr. Zhao’s lawyers are seeking a more generous five-month suspended sentence. These highlight Mr. Chao’s acceptance of responsibility, his history of philanthropy and community service, and the significant time he has already spent away from his family since pleading guilty.

Legal experts offer varying opinions on the likely outcome of sentencing. Former federal prosecutor Neema Rahmani Said Given the high profile nature of the case, he expected a sentence of one to two years, CNBC said.

Braden Perry, a former senior public defender at the Commodity Futures Trading Commission (CFTC), has suggested a recommended range of 10 to 16 months based on sentencing guidelines, but he believes Zhao’s guilty plea and his interactions with multiple agencies will result in a recommended range of 10 to 16 months. He believes the settlement could influence the judge’s decision.

Yesha Yadav, a law professor at Vanderbilt University, expects the sentence to be in the low single digits and could include a minimum prison term and extended probation.

Other legal experts, such as corporate lawyer Tre LaBelle, predict that Zhao will receive a shorter sentence of five to seven months because he is not charged with fraud and his sentence is short. . letter of apology to the judge.

Former federal and state prosecutor Paul Tuchman emphasizes the need for general deterrence in the crypto industry and expects the Justice Department to advocate for a sentence that conveys the consequences of violations. financial rules.

David Weinstein, a former federal and state prosecutor who now practices corporate compliance and white-collar defense at Jones Walker, said prison time is an important deterrent. He added that the sentence would be completed within a year.

Binance money laundering incident

Prosecutors allege that Zhao operates Binance on a “Wild West” model and shows “deliberate disregard” for the exchange. legal liability.

Zhao’s plea agreement with the Department of Justice (DOJ) required him to admit his involvement in facilitating money laundering activities at Binance.As part of the agreement, he agreed to: get off Appointed CEO, Richard Teng Appointed as the exchange’s new CEO.

In addition to his guilty plea, Mr. Zhao agreed to pay a $50 million fine.A payment order has been issued to Binance. $4.3 billion fine Forfeiture for violation of the U.S. Bank Secrecy Act and sanctions against Iran.

The case was a joint effort between the Department of Justice, the Commodity Futures Trading Commission, and the Treasury Department. The Securities and Exchange Commission (SEC) has filed a separate lawsuit against Binance. It remains to be seen what the consequences will be for CZ and whether there will be other impacts on the exchange.

The 1-D chart shows that the price of BNB is trending down. sauce: BNBUSD on TradingView.com

As the market experiences a sharp correction, the exchange’s native token, Binance Coin (BNB), is trading at $565, ​​down nearly 4% in the past 24 hours alone, and down 6% in the past seven days. It fell by more than %.

Featured image from NBC, chart from TradingView.com

Related Article

0 Comments

Leave a Comment