Former Binance CEO Facing 3-Year Jail Term and $50 Million Fine: US DOJ

By: Eliza Bennet

The United States Department of Justice (DOJ) has proposed a 36-month jail term and a $50 million penalty for Changpeng 'CZ' Zhao, the ex-CEO of leading crypto exchange Binance. However, Zhao's legal team argues this sentence would be unprecedented, and alternatively proposes probation and potentially home confinement at Zhao's Abu Dhabi home.

Zhao was initially slated for an 18-month jail term, according to an earlier plea deal, but the DOJ is pushing for increased penalties due to Zhao and Binance's deliberate engagement with US users while ignoring local laws. Furthermore, Zhao's lack of implementing robust anti-money laundering measures enabled illegal funds to pass undetected through Binance.

The DOJ emphasises that a stronger sentence would convey a powerful message worldwide, deterring others from generating wealth by breaking US laws. In contrast, Zhao's lawyers argue their client's remorse, his first-time offender status, absence of harmful intent, and the negligible risk of repeat offences.

As of now, Zhao remains on bail in the United States while his official sentencing is yet to be determined.