Important Moments for BNB: The Trial to Determine the Sentencing of Binance Founder CZ Begins! Here are LIVE Developments

cryptocurrency Changpeng Zhao, founder of exchange Binance, will learn his fate today regarding possible prison time for violating US money laundering laws. Prosecutors sought a three-year prison sentence, twice the 18-month sentencing guideline. They argue that “the scope and consequences of Zhao’s misconduct were enormous,” the sentencing memorandum states.

In response, Zhao’s legal team argues that their client does not deserve a prison sentence. They pointed out that “no defendant has ever been sentenced to prison in a similar BSA (Bank Secrecy Act) case.”

Zhao pleaded guilty and resigned from his position at Binance as part of a settlement with the US Department of Justice in November. In addition, Binance agreed to pay a staggering $4.3 billion fine. As part of the agreement, Zhao waived his right to appeal a sentence of up to 18 months in prison. He also agreed to pay a personal fine of $50 million, a relatively small amount compared to his estimated $33 billion fortune.

The US government accused Binance of knowingly evading anti-money laundering regulations. This avoidance allegedly allowed customers from Iran, Cuba and Syria to conduct transactions in violation of U.S. sanctions. The settlements with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) were announced simultaneously with Zhao’s guilty plea.

Here are all the developments of CZ’s case today, which will be updated live:

1. It’s a relatively quiet morning in Seattle. Unlike the Sam Bankman-Fried case, public interest in the sentencing of Binance founder Changpeng Zhao appears to be low.
2. CZ came to court. There is activity in the courtroom.
3. CZ wears a dark blue suit and stands out with his distinctive blunt cut.
4. The hearing was postponed to 19:30 Turkish time (UTC+3) due to a personal reason of the judge, the judge is waiting.
5. The hearing where CZ’s sentence will be determined has started. Judge Richard A. Jones took the stand.
6. Judge Richard Jones said he did not accept the Ministry of Justice’s request for a sentence increase that would increase CZ’s sentence from 18 months to 3 years: There is no evidence that the defendant (CZ) was aware of the illegal activities.
7. The Justice Department attorney argued that the judge should have been able to conclude that CZ was aware of the illegal activities, citing a previous case in which the judge concluded that a defendant was aware of the illegal activities.
8. In his speech, the judge largely agreed with the Probation Office. CZ’s offense level is believed to be “12”, which would mean 10-16 months in prison and 1-3 years of probation.
9. Justice Department lawyer: CZ intentionally sought to abuse the US financial system. “Breaking the law was an integral part of this effort; We are not speculating here, Mr. Zhao said it himself.”
10. The Justice Department lawyer said CZ deserved credit for turning himself in, but that credit was reflected in the plea agreement.

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*This is not investment advice.