Changpeng “CZ” Zhao, the founder of Binance and former CEO, is awaiting a decision on whether he will face imprisonment as he will appear in court today.
Tuesday in a federal courthouse in Seattle, CZ, who has buzz-cut hair and is dressed in a navy blue suit and light blue tie, will find out what happens to him. He showed up there accompanied by his sister, mother, nephew, and son, who were seated in the gallery to his left.
The former CEO of Binance, the biggest cryptocurrency exchange in the world, entered a guilty plea in November to a single count of breaking the Bank Secrecy Act. The conviction carries a potential 10-year jail sentence. However, that is lessened by CZ’s cooperation and guilty plea.
Zhao stated before hearing the judge’s decision, “I think the first step to taking responsibility is to fully recognize the mistakes. Here, I failed to fully set up a [know-your-customer program]. I also recognize the importance of having a robust KYC/[anti-money-laundering] program. That is why I directed Binance to cooperate with the U.S.’s investigation.”
According to a presentence report submitted by the Probation Office of the court, he should only serve five months in jail. In exchange for a plea agreement, Zhao also had to pay a $50 million fine—a negligible portion of his estimated net worth.
He may be worth up to $43 billion in assets. Zhao entered a guilty plea last year, and on the same day, Binance agreed to pay a $4.3 billion punishment. He resigned from the exchange he had formed in 2017 as part of the arrangement.
On Tuesday, a prosecutor contended that the Bank Secrecy Act guidelines were too forgiving, citing Binance’s substantial size as a reason why Zhao should face a “meaningful” prison sentence if not three years.
Also Read: Polymarket Predicts 1 Year Prison Sentence for Binance’s CZ
