Binance Founder Changpeng “CZ” Zhao Requests Probation, Gets Unprecedented Support

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The legal team of Binance founder Changpeng “CZ” Zhao has requested leniency from the court as he is a first-time offender with no history of violence, and his offense did not intend to harm anyone. Factors such as the crypto community’s backing and the recommendation from probation have prompted this request for a lighter sentence.

Changpeng “CZ” Zhao Ask For Probation

In a memorandum filed for the sentencing of Changpeng “CZ” Zhao, his lawyers argue that he should be placed on probation instead of serving a 36-month prison term. The attorneys presented various reasons during the upcoming hearing on April 30th to support their position.

  1. Nature and Circumstances of the Offense: CZ pleaded guilty to only anti-money laundering compliance failure and the government didn’t allege him to any crime involving money laundering, fraud, theft, market manipulation or any unlawful conduct
  2. CZ Personal History and Circumstances Support Lenience: He is devoted to his family, built Binance as a force for positive change, and collaborated with law enforcement to fight crypto crime and track illegal transfers. Changpeng Zhao also committed to charity with humanitarian aid by Binance Charity and took education initiatives.
  3. Zhao Has Shown Extraordinary Acceptance of Responsibility: Probation Office described CZ conduct as “remarkable” and “exceptional” acceptance of responsibility. Voluntarily appeared from a non-extradition country to plead guilty to criminal charges, paid a fine of over $4.3 billion along with personal fine of $150 million, and stepped down as CEO of Binance and related entities.
  4. Precedent and the Need to Avoid Sentencing Disparities Warrant Probation: 18 U.S.C. § 3553(a) strongly favors probation, no similar defendants sentenced to prison term, and the CZ case similar to BitMEX prosecution where defendants served probation.
  5. Harsher Conditions for Noncitizen: CZ will unfairly face harsher conditions if imprisoned as compared to a US citizen, with home confinement in the UAE under a reputable U.S.-based global security firm seems appropriate.
  6. Remaining 18 U.S.C. § 3553(a) Factors Also Support Probation: Deterrence, protection to the public,  needed training or rehabilitation, and seriousness of the offense is invalid.

Zhao’s defense is advocating for probation instead of imprisonment as an option, suggesting that he can serve this sentence at his residence in Abu Dhabi, with the argument being made that there is no likelihood of him re-offending.

CZ Gets Support from the Industry

The cryptocurrency world has rallied unusually behind CZ, urging him to come clean about any potential violations of Anti-Money Laundering regulations.

A large number of letters in support of leniency for Binance founder Changpeng Zhao have been submitted to the court by his family, friends, and professional associates. Members of the industry share this perspective, believing that the 36-month sentence could prove to be excessively harsh on CZ.

Arthur Hayes and Justin Sun, the founders of BitMEX and Tron respectively, expressed their support for CZ. Moved deeply by the heartfelt letters, particularly those penned by Yi He, Justin Sun shared his feelings.

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2024-04-25 10:35