Binance Founder CZ Gets Four Months In Prison: An ”Egregious Miscarriage Of Justice” Or A Fair Sentence?

Binance Founder Changpeng Zhao Sentenced to Four Months in Prison

Binance founder Changpeng Zhao, known as CZ, was sentenced to four months in prison after pleading guilty to anti-money laundering violations. The term was met with mixed reactions, with some calling it a miscarriage of justice and others deeming it appropriate.

Sentencing Hearing

During the two-and-a-half-hour sentencing hearing on April 30, prosecutors, the defense team, and the presiding judge acknowledged that Zhao was an atypical criminal defendant. Judge Richard Jones initiated the proceedings by commending Zhao's "mitigating" character and history.

Zhao was portrayed as a philanthropist, family man, and individual who accepted responsibility for his actions. These factors, combined with his first-time offense, contributed to a shorter sentence than the three years sought by prosecutors.

"An Egregious Miscarriage of Justice"

Prosecutors depicted Zhao as a willful lawbreaker who disregarded regulatory frameworks. They alleged that he failed to implement an effective anti-money laundering program as required by law.

Judge Jones inquired if the prosecutors' sentencing recommendation considered Zhao's philanthropic efforts. Prosecutor Kevin Mosley responded that "lots of really good people do bad things and violate the law."

Dennis Kelleher, CEO of Better Markets, condemned the sentence as "an egregious miscarriage of justice" that sends a negative message to criminals. He accused Zhao of intentionally creating Binance as a "crypto money laundering superstore" for criminals.

"A Just Sentence"

Patrick Hillman, a former Binance colleague, supported the sentence as "just," emphasizing the gravity of Zhao's missteps and his efforts to rectify them.

Braden Perry, a former federal enforcement attorney, noted that sentencing guidelines recommend a 10 to 16 month sentence for first-time nonviolent offenders. This factor played a significant role in Zhao's sentencing, he explained.

Zhao Expresses Regret

In a letter submitted to the court, Zhao expressed remorse for his actions. He promised that such conduct would not recur and thanked his supporters for their care and encouragement.