Within a week, the removed CEO of Binance, Changpeng Zhao, that is, the guru known in crypto circles only by his monogram, may be sentenced, according to a recent announcement by the competent court, which was a particularly unpleasant surprise for one of the most well-known players in the crypto market.
This is not what the founder of Binance expected
The sentence planned to be imposed by the court envisages a prison sentence of 36 months, which in the case of the crime to which CZ pleaded guilty as part of a plea deal, would not be imposed in the basic case: the maximum recommended sentence in extreme cases is only 18 months.
Regarding the imposition of a much higher sentence than expected, the prosecutor said:
Given the extent to which Zhao knowingly violated US law, we believe it is entirely reasonable to ask for twice the standard sentence.
The statement added that the 36-month prison term and the previously agreed upon $50 million fine together are sufficient, but not excessive, for CZ to achieve the goals of justice.
However, the threat of a prison sentence of 36 months instead of 18 will certainly significantly extend the time until the verdict becomes final: when CZ pleaded guilty to the crime of money laundering in his plea bargain, he agreed with the prosecutor that if he received a sentence of 18 months or less, he would not he will appeal against the sentence – but for double it, CZ and his legal team will certainly have a few words to say.
As part of the plea bargain last November, CZ resigned as CEO of Binance, his exchange paid a fine of $4.3 billion to the state treasury, and the cryptoguru himself was free to defend himself against a bail of $175 million. According to the settlement, however, Binance was free to continue its activities in America.
Even after leaving Binance and under the threat of imprisonment, CZ did not exit the crypto market completely. In March, he announced that he was launching a mainly educational project under the name Giggle Academy, i.e. “giggle academy”, which will target the really young, 2-3 year olds.
Regarding his new project, the cryptoguru considered it important to point out: the launch of Giggle Academy will not carry a new also launching it on the market.
