Former CEO of Binance, Zhao Changpeng, will face sentencing at the end of this month (4/30) regarding his prison term, following a settlement agreement reached with the US Department of Justice in November last year. In light of this, CZ has written a letter to the judge presiding over the case.
Table of Contents:
– CZ’s Apology Letter to the Judge
– 161 Support Letters from Family and Friends
– CZ Facing a Possible 3-Year Prison Sentence?
Background:
CZ Reveals “Giggle Academy” Education Project is Hiring! Jokingly Responds to the Community: Hiring Meme Experts?
Binance founder Zhao Changpeng (CZ) admitted to violating US anti-money laundering laws and other charges in November last year, resigned from his position as CEO of Binance, and paid a $175 million bail. After months of waiting, it is expected that the sentencing hearing at the end of this month (4/30) will determine the length of his prison term.
Prior to the trial, CZ wrote a letter to Judge Richard A. Jones, who is handling the case, expressing his apologies for his “wrong decisions” and acknowledging full responsibility for his actions. Looking ahead, he hopes to continue supporting blockchain technology startups and the growth of young entrepreneurs.
In addition to CZ’s apology letter, there are also 161 support letters from his family, friends, and others, seeking leniency from the judge. CZ’s sister, Jessica Zhao, a former Managing Director at Morgan Stanley, stated that despite her brother’s mistakes, he has made efforts in his life to help others. She also mentioned the example of the FTX incident, emphasizing that CZ ensured Binance never misused any customer funds.
Another Binance co-founder and mother of CZ’s three children, He Yi, wrote:
“CZ’s children, Rachel and Ryan, who are currently studying at universities in the United States, have also provided anecdotes to support their father and hope that the judge will not define Zhao Changpeng’s character based solely on this incident.”
One of the support letters came from Tigran Gambaryan, the Compliance Officer of Binance’s Financial Crime Department, who is currently detained due to the Binance-Nigeria dispute, and wrote the letter before his arrest on January 1, 2024.
Other support letters include those from Max S. Baucus, former US Ambassador to China, Jeremy R. Cooperstock, Professor at McGill University, Sean Yang, Managing Director at Morgan Stanley, and members of the ruling family of the United Arab Emirates, among others.
While CZ’s letters were being sent, the US Department of Justice submitted a sentencing memorandum on Tuesday, advocating for a 36-month prison sentence and a $50 million fine for CZ after admitting to violating the Bank Secrecy Act in November last year. The document stated:
“Originally, according to CZ’s plea agreement, the maximum sentence could be 18 months of imprisonment. However, the Department of Justice states in this document that ‘the scope and consequences of Zhao Changpeng’s misconduct were enormous,’ so ‘increasing the penalty here is appropriate.'”
According to US sentencing guidelines, Zhao Changpeng faces a recommended sentence of 12 to 18 months for the charges, but the judge has the authority to impose a longer sentence.
The memorandum also criticized CZ for failing to implement an effective anti-money laundering program at Binance, through which illicit actors used various methods to exploit the exchange, including:
– Operating mixed services to conceal the origin and ownership of cryptocurrencies
– Illicit profits from ransomware attacks
– Laundering proceeds from the dark web, exchange hackers, and various internet-related scams
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Court Modifies CZ’s Bail Conditions! Requires Zhao Changpeng to Surrender Canadian Passport and Stay in the US before Sentencing.