Ex-Binance CEO Could Be Sentenced To 10 Years In Prison, According To DOJ

Freelance Journalist

Andrew Throuvalas

Freelance Journalist

Andrew Throuvalas

About Author

Andrew is a journalist and content writer with a passion for Bitcoin. His work has been featured with Cryptonews, Decrypt, CryptoPotato, and Bitcoin Magazine, among others.

Author Profile

Share

Copied

Last updated:

November 27, 2023 16:20 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Binance founder Changpeng Zhao (CZ) could be sentenced to up to ten years in prison following his exchange’s historic legal settlement last week, according to a new filing from the Department of Justice (DOJ).

The Justice Department’s statement comes amid ongoing debate on whether CZ presents any “flight risk” and should be forced to wait out his bail term within the United States. While CZ’s attorneys have claimed his sentence will be “brief” giving him no incentive to flee, the DOJ says it could actually be much longer than they claim.

“The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years,” wrote the DOJ in its filing late Friday.

When presiding over CZ’s plea hearing last week, Magistrate Judge Brian Tsuchida released the exchange founder from custody on a $175 million personal recognizance bond.

He was also granted permission to spend his term in the United Arab Emirates (UAE) until 14 days before his sentencing on February 23, 2024, effective Monday at 5 pm ET.

DOJ prosecutors quickly scrutinized the bond agreement as “inefficient,” arguing that they couldn’t secure the bond if he left the country since most of his assets are outside the United States.

The Defense’s Response

CZ’s attorneys later countered that forcing him to stay in the United States would prevent him from taking care of his family, and spending time with them before his sentencing. However, the DOJ cited this as a reason for which CZ might find his sentence more “significant,” giving him a greater flight risk.

The department also cited CZ’s minimal ties to the United States compared to the UAE, where he has wealth citizenship, and family. Furthermore, the UAE lacks an extradition treaty with the United States.

“Given these connections, should Mr. Zhao decide not to return to the United States to face an uncertain sentence, there is no reason to believe that the UAE would hand him over,” the DOJ wrote.

CZ stepped down as the CEO of Binance last Wednesday upon pleading guilty to anti-money laundering and sanctions violations. He was personally fined $50 million while his exchange will be forced to pay $4.3 billion in penalties – the largest enforcement action ever levied against a crypto platform.