What Sentence Did Changpeng Zhao (CZ) Get?
On April 30, the U.S. District Court for the Western District of Washington sentenced former Binance CEO Changpeng Zhao after he pleaded guilty last fall to failing to provide an effective anti-money laundering (AML) program.
This is one of the most high-profile court cases in the crypto industry after the legal proceedings with another once-powerful player in the industry, Sam Bankman-Fried. The proceedings with Binance included a $4.3 billion fine and resignation as CEO.
Zhao was only charged with one count, with prosecutors requesting up to three years in prison. While Zhao's team pushed for probation. After months of waiting for the final verdict, Judge Richard Jones delivered the verdict. Zhao will spend only four months in prison.
BINANCE FOUNDER CHANGPENG ZHAO SENTENCED TO FOUR MONTHS IN PRISON pic.twitter.com/N0hS3vTIsk
— Radar🚨 (@RadarHits) April 30, 2024
The key points of the final verdict were the absence of some evidence from the prosecution, as well as Zhao's behavior, who immediately surrendered to the authorities and repented of his crime. Changpeng Zhao apologized repeatedly, behaved modestly (according to the judge), and sent 160 letters from his family asking for leniency.
The outcome of the Changpeng Zhao case is strikingly different from another high-profile and major case in the crypto industry. Months earlier, former FTX CEO Sam Bankman-Fried was given a harsher sentence. He will spend 25 years in prison. Such a difference caused discussions in the crypto community.
SBF kept babbling pretending his innocence while awaiting his trial and got 35 years
— Peter R Hann (@PeterRHann1) April 30, 2024
CZ made a deal early on and now gets 4 months.
Striking contrast
However, unlike Zhao, whose charges were limited solely to regulatory violations, Bankman-Fried was convicted on multiple counts, including fraud, conspiracy to launder money, defrauding customers, and more.
Following his conviction, Zhao stated that he would focus on a "new chapter" in his life. After leaving Binance, Zhao founded a blockchain-based online education platform for children.
Changpeng Zhao Sam Bankman-Fried Binance
