The sentencing hearing for Zhao Changpeng (CZ), the founder of cryptocurrency exchange Binance, will officially take place on April 30th in a Seattle court in the United States. The Department of Justice has requested a sentence of 3 years, while the Probation Office has recommended 5 months of probation. The outcome is yet unknown, but caution should be exercised due to the potential impact on the volatility of BNB.
Background:
Prior to the sentencing, CZ issued an apology letter and received support from 350 individuals, who submitted letters to the court.
Summary:
The largest cryptocurrency exchange in the world, Binance, reached a settlement agreement with the Department of Justice, the Commodity Futures Trading Commission (CFTC), and other institutions in November last year. As part of the agreement, Binance admitted guilt and agreed to pay a $4.3 billion fine. CZ, the founder, acknowledged charges of violating the US anti-money laundering laws, resigned as CEO of Binance, and posted a $175 million bail.
On Tuesday (4/30), CZ will face the final sentencing hearing, which will determine his length of imprisonment. The exact time is currently unknown, but considering the 15-hour time difference between Seattle and Taiwan, the outcome is expected to be announced late tonight or early tomorrow morning.
The Department of Justice has requested a sentence of 36 months of imprisonment and a $50 million fine in a sentencing memorandum released last week. This is to demonstrate their strict regulatory stance against cryptocurrency money laundering activities. Tama Kudman, partner at the law firm Kudman Trachten Aloe Posner LLP, commented on this, stating that although the previous plea agreement suggested a sentence of around 18 months for CZ, both the Department of Justice and CZ can appeal to request an extension or reduction of the sentence.
In contrast to the Department of Justice’s recommendation, the Probation Office has suggested a probation period of 5 months for CZ. Some lawyers have expressed the belief that CZ’s active admission of guilt and cooperation during the review process may garner favor from the judge, resulting in a favorable outcome for him. However, some lawyers have also stated that while CZ has the ability to appeal the length of his sentence, it may be difficult for him to succeed.
Investors of BNB, the native token of the Binance platform, should exercise caution as the upcoming sentencing hearing is likely to cause significant price fluctuations. Whether the price will go up or down is uncertain, but market participants should attentively monitor potential market changes.
At the time of writing, BNB is currently trading at $592.8, experiencing a 1.6% decrease in the past 24 hours.
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