Binance’s former Chief executive, Changpeng Zhao (CZ) is facing the possibility of serving years in prison. This comes following his guilty plea to violating US money laundering laws. Reports suggest that CZ could get a sentence twice the maximum of 18 months. This is as recommended under federal guidelines and requested by US prosecutors.
CZ is facing jail time
The sentencing hearing which will be conducted by District Judge Richard Jones in Seattle will mark a huge moment in the ongoing legal tussle around the crypto market. However, the prosecutors had argued that imposing a tough sentence for Binance ex chief would send out a clear message regarding the law.
It mentioned that the outcome of Binance’s former CEO’s sentencing is scheduled to begin at 9 a.m. PDT (1600 GMT) on Tuesday.
This becomes crucial as CZ once stood as one of the most influential figures in the industry. His plea deal with the Department of Justice (DOJ) has led to his resignation as CEO. It marked a huge turning point in his massive career.
According to top reports, legal experts had expressed surprise at the prosecution’s request for a stiff sentence. That too after considering CZ’s guilty plea. It is expected that the prosecutors may be seeking to set a precedent. This is given to his high profile and the gravity of the charges.
What’s his legal defense?
It is important to note that the CZ’s legal team has requested probation for their client. They have highlighted his acknowledgment of responsibility and criminal fine of $50 million that he has already paid. His team has mentioned that Zhao has no prior criminal record. However, they argued that no other defendant had ever been sent to jail in a similar case.
A report stated that CZ’s defense team is pushing for a more lenient sentence. More than 160 supporters including have appealed for leniency on his behalf. This includes his family members and some known figures.
This major event is happening when the global crypto market is printing red indexes all around. The total crypto market cap is down by over 2% in the last 24 hours to stand at $2.24 trillion.
Bitcoin, the biggest crypto, price had dropped by 2% in the last 24 hours. BTC is struggling and might surrender below the $60,000 price level. It is trading at an average price of $60,844, at the press time.
