[NEWS] US Department of Justice seeks 36 months in prison and $50 million fine for Binance founder CZ

The US Department of Justice has sought a 36-month prison sentence and a $50 million fine for CZ (Changpeng Zhao), the founder of the major cryptocurrency exchange Binance. This was revealed in documents filed by the Department of Justice in court on the 23rd.

CZ admitted that Binance had violated US law in November last year and resigned as CEO of Binance to settle with US regulators. Binance paid a settlement of $4.3 billion, and CZ himself is awaiting the court's decision.

In the documents, the Department of Justice argued that "CZ and Binance ignored US regulations and intentionally targeted US customers as part of their expansion strategy. CZ's actions were intentional, based on a business decision to calculate and ignore US law in pursuit of growth and personal gain."

The Justice Department further noted that Binance had failed to implement adequate anti-money laundering measures, allowing illicit funds to flow unchecked, adding that this was "CZ's negligence." "CZ's willful violation of U.S. law was not an accident or an oversight. He made a business decision that violating U.S. law was the best way to attract users and enrich himself," it continued.

The Justice Department said CZ's sentence will send a message to the world and will help deter others from building "wealth and business empires in violation of U.S. law."

In light of these circumstances, the Department said the proposed sentence of 36 months in prison and a $50 million fine for CZ "will have a concrete and general deterrent effect."

Pleaded guilty, but lawyers argue for reduced sentence

CZ's lawyers, in response, argue that "(CZ) is deeply remorseful for his violations, accepts responsibility, and has demonstrated a willingness to reform." "CZ is a non-violent criminal who committed a crime without the intent to harm anyone. He is not a risk to reoffend. He came to this country voluntarily to accept responsibility," he said, asking the court to follow precedent and grant a suspended sentence.

Initially, CZ was expected to receive a maximum sentence of 18 months in prison. The Department of Justice has now requested a sentence of 36 months in prison and a fine, which shows the seriousness of the matter.

CZ also submitted a letter to the court in which he apologized, saying, "There is no excuse for my failure to establish the necessary compliance controls at Binance."

He continued, "I apologize for my inappropriate decisions and take full responsibility for my actions. I want to make things right, close the chapter, turn the page, and focus on the next chapter in my life." This is related to the education project CZ launched last month and the future direction he stated when he stepped down as CEO.

CZ said, "Words cannot describe how deeply I regret the decision that brought me to court. I will never do this again, so please rest assured." In addition to CZ's own letter, a total of 161 letters were sent to the court from his family and associates, asking for leniency.

CZ's sentencing was originally scheduled for late February, but has been rescheduled to April 30. CZ is currently out on bail of $175 million.

Reference:Court Document 1,Court Document 2
Image: Shutterstock

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