Binance founder CZ’s sentencing hearing is scheduled to take place on April 30th, and the first ruling is expected to be announced in the early hours of May 1st, Taiwan time.
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US Probation Office suggests 5 months of imprisonment
Is the Department of Justice trying to make an example?
SBF faces a possible sentence of 100 years, seeks 50, ultimately sentenced to 25
Is it better to plead guilty without a plea agreement?
The current issue is that according to CZ’s plea agreement at the time, he can only appeal sentences exceeding 18 months, but before that, the Department of Justice and CZ’s lawyers can still argue about the sentence in court.
According to sentencing memoranda released by US prosecutors last week, CZ is recommended to be sentenced to 36 months of imprisonment, while the defense team is requesting home confinement or probation.
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Furthermore, according to the defense documents from last week, the US Probation Office had previously recommended a sentence of only 5 months, highlighting the disparity in expectations from different parties.
(
US prosecutors seek 3-year imprisonment for Zhao Changpeng, twice the maximum in federal sentencing guidelines
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CoinDesk has compiled predictions and opinions from many industry professionals.
Is the Department of Justice trying to make an example?
Tama Kudman, partner at law firm Kudman Trachten Aloe Posner, stated that the Department of Justice’s request for a longer sentence seems to send a strong message that they are actively combating money laundering, while CZ appears to be taking it lightly.
Although the proposed 36-month sentence by the Department of Justice last week surprised many, Tama Kudman believes that this does not necessarily mean the Department of Justice has abandoned the initial agreement of 18 months, and the final outcome is still uncertain.
SBF faces a possible sentence of 100 years,
seeks 50, ultimately sentenced to 25
Using SBF as an example, an anonymous lawyer stated that the sentencing guidelines calculated a sentence of over 100 years, but the prosecutor only sought 50 years, resulting in a final sentence of 25 years of imprisonment.
(
SBF’s final statement in court before receiving a 25-year sentence: Apologizing to FTX colleagues
)
Furthermore, former BitMEX CEO Arthur Hayes, like CZ, was charged with violating banking secrecy laws and pleaded guilty, ultimately receiving 6 months of home confinement and 2 years of probation.
(
Co-founder of BitMEX arrested! US CFTC accuses multiple charges, Bitcoin plunges
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Is it better to plead guilty without a plea agreement?
Similarly, the anonymous lawyer pointed out that for the Department of Justice, requesting a longer sentence would have almost no downside, but it could lead to future individuals being more cautious about plea agreements and seriously considering the potential sentence the Department of Justice may request.
Additionally, the Department of Justice believes that CZ should not receive leniency simply for voluntarily cooperating with the investigation. This could become a point of contention, as CZ’s lawyers argue that he should receive leniency for his guilty plea and cooperation.
Finally, the lawyer stated that although CZ can appeal sentences exceeding 18 months, it would be difficult to succeed as appellate courts rarely overturn district court rulings, even if the punishment is deemed excessive.
CZ
Binance
Zhao Changpeng
Further reading
Letter of support from He Yi: If the crypto industry is the Wild West, CZ is its guardian
Full text of CZ’s apology letter: Taking responsibility and proud to spend the rest of his life