Changpeng Zhao faces justice: prison or freedom?

TL; DR

• Changpeng Zhao appears in court to receive his sentence after pleading guilty to violating the Bank Secrecy Act.
• Despite the fact that the sentence was reduced to 18 months due to his cooperation. The U.S. Department of Justice recommends three years in prison.
• The punishment will affect both Zhao and Binance, who agreed to pay a $4.3 billion fine on the same day Zhao pleaded guilty. Moreover, there is probably one direct impact on the crypto market as a whole and on other companies in the sector.
  

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Binance founder Changpeng Zhao will appear in court today to sentence him after pleading guilty last November to violating the Bank Secrecy Act.

This charge would normally have carried a prison sentence of up to ten years. But thanks to his cooperation and guilty plea, the sentencing guidelines were reduced to approximately 18 months. However, the U.S. Department of Justice recommendation is a three-year prison sentence. While his defense argues that no prison sentence should be imposed.

The sentencing hearing is the final chapter in Zhao’s case. WHO agreed to pay a $50 million fine as part of his guilty plea. This amount, while exorbitant, is only a fraction of his vast fortune, estimated at $43 billion. If the court decides to impose a sentence longer than 18 months, Zhao will have the opportunity to appeal.

Changpeng defense prepares conditions for possible house arrest

The punishment will not only affect Changpeng Zhao, but also Binance, the cryptocurrency exchange he founded in 2017. Binance agreed to pay a $4.3 billion fine on the same day Zhao pleaded guilty. In addition to the fine, CZ also stepped down as CEO of Binance as part of the agreement.

Zhao’s defense argues that he should not spend time in prison, but instead proposes a proposal house arrest and probation. In addition, they presented a security plan to ensure the protection of Changpeng’s home in the event of house arrest.

The outcome of the trial raises important questions about Zhao’s future and the impact on the crypto market as a whole. As the face and one of the most recognized leaders in the industry. His punishment could send a message to other executives and companies about liability and legal consequences in the world of cryptocurrencies.