U.S. Prosecutors Seek 3-Year Sentence for Binance Founder CZ

In a critical update from the U.S. legal system, prosecutors are pushing for a 36-month prison sentence for Binance founder Zhao Changpeng (CZ), highlighting ongoing tensions between regulatory authorities and the cryptocurrency industry.

Stay informed about CZ's legal journey, his resignation as CEO, and his latest philanthropic venture, Giggle Academy.

Legal Challenges Faced by Binance's Zhao Changpeng

U.S. prosecutors have sought a 36-month prison sentence for Zhao Changpeng, the founder and former CEO of the cryptocurrency exchange Binance. This development comes as a significant event in the regulatory landscape for cryptocurrency businesses in the United States.

Zhao Changpeng, commonly known as CZ, has acknowledged violating U.S. laws in the operation of Binance, which has been one of the largest global cryptocurrency exchanges.

In November of the previous year, CZ settled with U.S. regulators and resigned as CEO, and he is now awaiting the outcome of his sentencing.

Previously, it was reported that CZ could face a prison term of over one year. However, documents submitted by the U.S. prosecutors to the court on April 23 assert that CZ should serve a 36-month prison term.

Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-Guidelines sentence of 36 months is warranted.

That sentence, together with the agreed $50 million fine, is sufficient but not greater than necessary to balance the relevant.

Defense Arguments for Probation

On the other hand, CZ’s defense team has requested a more lenient punishment and probation, citing several factors.

These include his status as a first-time offender, his straightforward admission of responsibility, a substantial fine of 50 million dollars already paid, and precedents of similar cases where the defendants were not incarcerated.

CZ is currently out on bail for 175 million dollars, with the verdict scheduled for April 30, 2024.

Additionally, in March of this year, CZ announced the launch of "Giggle Academy," a non-profit educational project aimed at providing free basic education for everyone from ages 1 to 12 years.

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