Binance founder Changpeng Zhao (CZ) could face a sentence of up to ten years in prison, as indicated by a recent filing from the Department of Justice (DOJ). The DOJ challenges assertions of a "brief" sentence, highlighting a potential top end of the sentencing Guidelines range of 18 months, with CZ able to argue for a term up to the statutory maximum.
Magistrate Judge Brian Tsuchida, overseeing CZ's plea hearing last week, released him on a $175 million personal recognizance bond. CZ was granted permission to stay in the United Arab Emirates (UAE) until 14 days before his sentencing on February 23, 2024. The DOJ quickly criticized the bond agreement, deeming it inefficient due to difficulties securing the bond if CZ were to leave the country, given his global assets.
In response, CZ's attorneys argued that staying in the United States would hinder his ability to care for his family and spend time with them before sentencing. However, the DOJ suggested that this might increase the significance of his sentence, raising flight risk concerns. The department emphasized CZ's minimal ties to the United States compared to the UAE, where he holds wealth, citizenship, and family ties, and where there is no extradition treaty with the United States.
CZ stepped down as Binance CEO after pleading guilty to anti-money laundering and sanctions violations. He received a personal fine of $50 million, and Binance was ordered to pay a record $4.3 billion in penalties, marking the most substantial enforcement action ever against a cryptocurrency platform.
