- The US Department of Justice (DOJ) wants a 36-month prison sentence for Changpeng “CZ” Zhao.
- This comes in addition to the former Binance CEO’s $50 million fine.
- Analysts and members of the cryptocurrency community react over the excessive penalty for CZ.
US DOJ’s Proposed Sentence for Changpeng Zhao
There just seems to be no end to the tribulations plaguing Binance since last year. Following the company being fined billions in the US and Nigeria strong-arming it to do the same while the list of countries banning its platform continues to increase, its former CEO Changpeng (CZ) Zhao awaits sentencing in the States.
From the looks of it, the US Department of Justice is not letting him off lightly on April 30. Recently, we got wind that the agency has recommended a three-year sentence for CZ, much to the chagrin of the crypto community. This comes in addition to his hefty $50 million fine and Binance’s guilty plea worth $4.32 billion.
The Crypto Community Reacts
The proposed sentence of the DOJ for Zhao earned the ire of critics, especially the crypto community, for its severity. According to Reuters, federal sentencing guidelines only penalize a maximum of 18 months of jail time for Bank Secrecy Act violations. It should be added that both Binance and CZ have been nothing but cooperative from the get-go. Hence, this should serve as an indication that the latter poses no further risk in relation to the lawsuit and should at least earn some credits in court for acting in good faith so far.
The former Binance CEO initially agreed not to appeal the sanction if it does not exceed such length. Thus, if the DOJ succeeds in convincing the court of their proposal, we may see this legal battle stretching further due to Zhao’s camp possibly seeking an appeal or other remedies provided by law.
Based on the statements of the DOJ, they are clearly looking to make an example out of Zhao. They also believe that the 36-month prison term is commensurate with the benefits the former exec reaped from his illegal activities during his tenure in Binance.
“Given the magnitude of Zhao’s willful violation of US law and its consequences, an above-guidelines sentence of 36 months is warranted,” said the prosecution. “The sentence in this case will not just send a message to Zhao but also to the world.”
“Zhao reaped vast rewards for his violation of US law, and the price of that violation must be significant to effectively punish Zhao for his criminal acts and to deter others who are tempted to build fortunes and business empires by breaking US law,” the DOJ added.