Crypto X is abuzz today following the sentencing of Changpeng ‘CZ’ Zhao, the co-founder and former CEO of Binance Exchange. In a relatively calm sentence hearing, presiding Judge Richard Jones handed down a 4-month sentence to CZ.
Binance Founder Gains From Unexpected Leniency
The historic sentencing is the second high-profile the industry is witnessed thus far this year. Earlier in March, Sam Bankman-Fried (SBF) was slammed with a 25-year jail term for fraud perpetrated at FTX Exchange.
Unlike SBF which misused customers’ funds, Binance’s CZ did not. Rather he pleaded guilty to a count charge involving the violation of the US Bank Secrecy Act (BSA). This guilty plea came in Q4 last year and saved Prosecutors from the United States Department of Justice (DOJ) valuable time.
Before the sentencing, the prosecutors recommended a 36-month or 3-year jail term. However, Judge Jones pitched tents with the recommendation of the Probation Office that sets 10 to 16 months jail term.
During the sentencing, CZ apologized again for the “mistakes” he made for failing to implement the KYC program as CEO. The argument of his lawyers on his devotion to family, tech development, and a force for positive change might have persuaded the judge.
The 4-month jail term shows a unique twist of leniency from the Court.
BREAKING: CZ SENTENCED TO 4 MONTHS IN PRISON
Corrects previous tweet that said 5
— @nikhileshde@journa.host (@nikhileshde) April 30, 2024
New Venture Growing
The 4-month jail term might be a relatively short time, however, to CZ and his new venture, it might not be.
The embattled crypto tech leader announced the creation of Giggle Academy earlier this year. Giggle came to live to provide education to underserved children at relatively zero cost. While CZ is just building out Giggle Academy, it remains uncertain how the new entity will fare in his 4-month absence.
While exchanges like Coinbase are introducing new products for users, this sentencing brings an end to speculation regarding the Binance.
