DOJ Pushes for Harsh 3-Year Prison Sentence for Binance Founder “CZ”

Well, here’s yet another twist for the crypto space!

According to a Reuters report, the U.S. Department of Justice (DOJ) now recommends a three-year prison sentence for Changpeng “CZ” Zhao, the founder and former CEO of Binance. This recommendation comes on the heels of Zhao’s admission of guilt last year for breaching the Bank Secrecy Act.

DOJ’s Stern Stance

In a sentencing memo filed by DOJ attorneys, they argued that Zhao should serve 36 months in prison and pay a $50 million fine. The memo emphasized that the severity of the sentence is crucial not only to hold Zhao accountable but also to send a clear message to others tempted to flout U.S. laws for financial gain. The DOJ stressed the need for significant consequences to deter individuals from building fortunes through illegal means.

Initially facing up to 18 months in prison under his plea deal, Zhao faces a stiffer sentence as the DOJ highlights the extensive nature and impact of his misconduct. The agreed $50 million fine aims to drive home the gravity of the violations.

Also Read: Canada’s Ontario Court Sues Binance Over Alleged Securities Violations: Investors Wronged?

Considering the Global Impact

Zhao’s sentencing, originally slated for February, now awaits resolution on April 30 due to mutual postponement. Since his court appearance in Seattle last year, Zhao has been unable to return to his family in Dubai.

Meanwhile, Binance, the cryptocurrency giant, has pleaded guilty to related charges, facing a significant fine and oversight by a court-appointed monitor.

Philippines SEC Adds to the Pressure

In a separate development, the Philippines SEC calls for the removal of the Binance app from major app stores, citing unregistered securities and operating without a broker’s license. Binance’s share of Bitcoin trading outside the U.S. has reportedly dropped from 81.3% to 55.3% over the past year due to increased competition and stricter regulations.

Do you think Binance can recover from this? Weigh in with your take.