Binance Founder Sentenced to 4 Months in Prison for Money Laundering Charges
Changpeng Zhao, popularly known as CZ, the visionary founder behind Binance, the world’s premier cryptocurrency exchange, found himself in the spotlight as he faced sentencing in a US federal court in Seattle. The verdict, a four-month prison term, marked a significant chapter in the tumultuous journey of one of the most influential figures in the crypto sphere.
Before the court’s ruling, CZ took the opportunity to express remorse for his actions during his tenure as CEO of Binance. In a heartfelt letter to the judge, he acknowledged the gravity of his decisions and vowed to learn from his mistakes, ensuring that such lapses in judgment would not recur.
The legal saga stemmed from a coordinated settlement between Binance and the federal government, wherein the exchange giant agreed to pay a staggering $4 billion in fines and penalties. The charges ranged from anti-money laundering violations to unlicensed money transmission and sanctions breaches. As part of the settlement, CZ, with a personal fortune nearing $40 billion, agreed to step down from his role as CEO and pay fines totaling $200 million.
https://www.msn.com/en-us/money/companies/binance-founder-sentenced-to-4-months-in-prison-for-money-laundering-charges/ar-AA1nY28q
Topic: SEC vs Binance - page 3. (Read 2507 times)
https://www.reuters.com/legal/us-seeks-36-months-jail-binance-founder-zhao-2024-04-24/
US seeks 3 years prison for Binance founder Zhao
"U.S. prosecutors want Changpeng Zhao, the founder and former chief executive of Binance, the world's largest cryptocurrency exchange, to serve three years in prison after he pleaded guilty to violating laws against money laundering.
Prosecutors made the request in a Tuesday night filing in Seattle federal court.
They said sentencing Zhao to twice the maximum 18 months recommended under federal guidelines would reflect the magnitude of his willful violations, and send a message that "the right choice, every time, is to comply with the law.""
___
If you come to visit us, then spend a little time in prison
US seeks 3 years prison for Binance founder Zhao
"U.S. prosecutors want Changpeng Zhao, the founder and former chief executive of Binance, the world's largest cryptocurrency exchange, to serve three years in prison after he pleaded guilty to violating laws against money laundering.
Prosecutors made the request in a Tuesday night filing in Seattle federal court.
They said sentencing Zhao to twice the maximum 18 months recommended under federal guidelines would reflect the magnitude of his willful violations, and send a message that "the right choice, every time, is to comply with the law.""
___
If you come to visit us, then spend a little time in prison
Judge Signs Off on Binance's $4.3B Plea Deal With U.S. Prosecutors
A federal judge has signed off on crypto exchange Binance's $4.3 billion plea deal with the U.S. Department of Justice.
During a sentencing hearing Friday, Judge Richard Jones of the U.S. District Court for the Western District of Washington approved the top-line fine itself, though he did not yet sign off on any monitor for the exchange. Bloomberg first reported the news earlier Friday.
A federal judge has signed off on crypto exchange Binance's $4.3 billion plea deal with the U.S. Department of Justice.
During a sentencing hearing Friday, Judge Richard Jones of the U.S. District Court for the Western District of Washington approved the top-line fine itself, though he did not yet sign off on any monitor for the exchange. Bloomberg first reported the news earlier Friday.
On what accusation?
You need to accuse somebody of a charge that comes with life imprisonment if found guilty!
There is none that has this sentence in the current prosecution!
If CZ is tried in the US for financial crimes, I agree that he will receive no more than 18 months of house arrest.
https://www.bloomberg.com/news/articles/2024-02-17/bahamas-bank-deltec-accused-of-giving-sbf-secret-credit-to-buy-tether
But if the deal doesn’t go through, then I can only assume that he could be tried on other charges related to the financing of terrorism. And this is not just one life sentence.
https://abc7chicago.com/israel-hostages-binance-crypto/14378652/
"An American woman freed after being held hostage in Gaza and the families of two men killed in the Oct. 7 attack in Israel sued Binance, the leading cryptocurrency exchange, which they accused of providing a funding mechanism for Hamas."
This is where you are wrong. 50% chance that there will be life imprisonment and 50% chance that there will be no life imprisonment 
So are you willing to bet a coin on the life imprisonment? I'm all ears!
Remember, CZ is not Navalny tripping on a wet towel in some prison and dying of 30 billets in his back!
Hayes was accused of exactly the same with Bitmex, he did the same thing, surrender to the US coming to Hawaii, release on bail but not allowed to flee the country, he had no priors so he was sentenced for six months house arrest and just two years probation. Belo did the same, came to surrender got a probation offense, after one year he was allowed to go to Hong Kong, and that was that!
Again this is the DoJ flexing its muscle and telling them to play nicely and they will get treated nicely, be some sort of wanna be rebel and loud mouth rascal and you're going to get it!
But to be serious, I think the American intelligence services have collected a lot of incriminating evidence on CZ and in case of refusal of the deal, the prison term could be close to life imprisonment.
On what accusation?
You need to accuse somebody of a charge that comes with life imprisonment if found guilty!
There is none that has this sentence in the current prosecution!
And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.
There is zero chances of him being handed a life sentence. Zero!
But to be serious, I think the American intelligence services have collected a lot of incriminating evidence on CZ and in case of refusal of the deal, the prison term could be close to life imprisonment.
And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.
There is zero chances of him being handed a life sentence. Zero!
The maximum maximum what the prosecutors can ask for on all charges combined would be ten years and that would be on all aggravating circumstances, but him pleading guilty in the first case cuts that!
Zero chances for a life sentence, close to zero for the maximum 10 years and probably not even half for the 18 months.
I doubt it will be more than 6 months and those will probably be in a FPC, some of those are way better than the housing in 80% of the world, not Norway but still way better than what people think of prisons.
Okay, I will try to prove to you that the fact of collateral is not important.
But you were the one who claimed that the the collateral was the one who would guarantee that CZ would have returned even with a conviction pending. How come that right now you want to prove the opposite?
I am sure that CZ came to the US to be tried and agreed to pay a huge fine because he entered into an agreement with the US government.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.
Yeah, he agreed to let the US government do as it please with him!
Yu know what the deal of pleading guilty means? That he has no choice when the ruling is served, the only way to appeal would be for him to be granted a new trial under the not guilty defense, meaning a far longer conviction. So he basically came to the country, signed up for a deal that will remove his appeal no matter what the sentence is and gave up almost eveything just, so to not be hunted down and still be brought in front of a judge.
But everything is #safu!
Of course, under the terms of the deal, CZ must plead guilty to all charges. The second main condition of the deal is to provide complete and truthful information to the US government.
I believe that new circumstances have emerged in this case that play against CZ. Therefore, the US authorities gave him time to think before the Bitcoin halving
And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.
Okay, I will try to prove to you that the fact of collateral is not important.
But you were the one who claimed that the the collateral was the one who would guarantee that CZ would have returned even with a conviction pending. How come that right now you want to prove the opposite?
I am sure that CZ came to the US to be tried and agreed to pay a huge fine because he entered into an agreement with the US government.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.
Yeah, he agreed to let the US government do as it please with him!
Yu know what the deal of pleading guilty means? That he has no choice when the ruling is served, the only way to appeal would be for him to be granted a new trial under the not guilty defense, meaning a far longer conviction. So he basically came to the country, signed up for a deal that will remove his appeal no matter what the sentence is and gave up almost eveything just, so to not be hunted down and still be brought in front of a judge.
But everything is #safu!
Binance founder CZ’s sentencing date postponed to late April
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.
Looks like they enjoy slow cooking him! Probably the DOJ flexing its muscle for show as message he's done for , this was like the final warning that they can toy with him as they please, probably the lower 6 month sentence that will be cut to 3 for first time offense in minimum security, then he will go and enjoy his life but without touching an exchange or crypto again.
Binance founder CZ’s sentencing date postponed to late April
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.
The “notice of rescheduled hearing” was filed in a Seattle Federal Court on Feb. 12. Zhao was originally due to be sentenced on Feb. 23 after pleading guilty to money laundering charges. He is expected to face up to 18 months in prison.
However, a Nov. 24 filing by the prosecution indicated that he may face a harsher punishment than initially expected.
“The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee. The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years.”
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.
The “notice of rescheduled hearing” was filed in a Seattle Federal Court on Feb. 12. Zhao was originally due to be sentenced on Feb. 23 after pleading guilty to money laundering charges. He is expected to face up to 18 months in prison.
However, a Nov. 24 filing by the prosecution indicated that he may face a harsher punishment than initially expected.
“The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee. The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years.”
Why?
Because simple logic! He has no family, he has no assets in the US , he is not a citizens and all he put down as a guarantee was equity in a foreign company not based in the US but still under his total control. Do you think any country would have let him go?
Quote
did not even let him out to see a sick relative
Yeah right, this thing wouldn't be believed even on this forum but by a judge, we had this thing in our country before we joined the EU, every time an official was arrested for fraud he suddenly got ill, we even nicknamed the anti corruption department the cancer screeners as they were finding more cases in their arrest that a doctor in a hospital.
How much are you willing to bet that CZ "relative" has miraculously got better and got out hospital the moment poor CZ couldn't get there?
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.
I think that new circumstances have appeared in the case, and now CZ is under the influence of the US judicial system.
Why?
Because simple logic! He has no family, he has no assets in the US , he is not a citizens and all he put down as a guarantee was equity in a foreign company not based in the US but still under his total control. Do you think any country would have let him go?
Quote
did not even let him out to see a sick relative
Yeah right, this thing wouldn't be believed even on this forum but by a judge, we had this thing in our country before we joined the EU, every time an official was arrested for fraud he suddenly got ill, we even nicknamed the anti corruption department the cancer screeners as they were finding more cases in their arrest that a doctor in a hospital.
How much are you willing to bet that CZ "relative" has miraculously got better and got out hospital the moment poor CZ couldn't get there?
I would like to discuss one point.
Zhao is awaiting trial in the US at the end of February. Previously, you read the news that the US government banned Zhao from leaving the country until a court decision and did not even let him out to see a sick relative on a huge bail of 4.5 billion dollars.
Why?
If Zhao does not come to court, he will lose a lot of money and will be wanted.
Is Zhao's fate now being decided or has it already been decided?
Is this a form of pressure or will Zhao get a prison sentence?
Zhao is awaiting trial in the US at the end of February. Previously, you read the news that the US government banned Zhao from leaving the country until a court decision and did not even let him out to see a sick relative on a huge bail of 4.5 billion dollars.
Why?
If Zhao does not come to court, he will lose a lot of money and will be wanted.
Is Zhao's fate now being decided or has it already been decided?
Is this a form of pressure or will Zhao get a prison sentence?
Hacker Sells Access to Binance’s Law Enforcement Portal, Cryptocurrency Holders at Risk.
Although threat actors often lie about accesses they possess, in this example it appears the threat actor maintains positive reputation from previous sales conducted on the forum, and they also offer a range of other unrelated accesses.
The asking price for the access is $10,000 in Bitcoins or Monero.
In order to identify how the threat actor obtained access to the panel, Hudson Rock researchers first located the location of Binance’s law enforcement panel which is hosted on kodexglobal.com
Although threat actors often lie about accesses they possess, in this example it appears the threat actor maintains positive reputation from previous sales conducted on the forum, and they also offer a range of other unrelated accesses.
The asking price for the access is $10,000 in Bitcoins or Monero.
In order to identify how the threat actor obtained access to the panel, Hudson Rock researchers first located the location of Binance’s law enforcement panel which is hosted on kodexglobal.com
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
The correct answer is Coinbase!
It's getting blatantly obvious that Coinbase has a silent support from SEC (and possibly other bodies) and is set to have a near monopoly on the US market. It's not just Binance that's being under attack. SEC has filed another complain against Kraken, despite them paying $30 millions under a settlement not that long ago (at the beginning of the year). This is getting ridiculous.
Jesse Powell (co-founder of Kraken) is losing it and attacks SEC on X
https://twitter.com/jespow/status/1726791124650713134?s=20
____
https://www.cftc.gov/PressRoom/PressReleases/8837-23
Federal Court Enters Order Against Binance and Former CEO, Zhao, Concluding CFTC Enforcement Action
"Washington, D.C. – The Commodity Futures Trading Commission today announced the U.S. District Court for the Northern District of Illinois has approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Changpeng Zhao and his companies Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited (together, Binance). In formalizing the settlement initially announced on November 21 [See CFTC Press Release No. 8825-23], the court finds Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations, imposes a $150 million civil monetary penalty personally against Zhao, and requires Binance to disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC. The order also obligates Zhao and Binance to make certifications as to the existence, application, and efficacy of Binance’s improved compliance controls, and permanently enjoins them from further violations as charged. "
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
The correct answer is Coinbase!
It's getting blatantly obvious that Coinbase has a silent support from SEC (and possibly other bodies) and is set to have a near monopoly on the US market. It's not just Binance that's being under attack. SEC has filed another complain against Kraken, despite them paying $30 millions under a settlement not that long ago (at the beginning of the year). This is getting ridiculous.
Jesse Powell (co-founder of Kraken) is losing it and attacks SEC on X
https://twitter.com/jespow/status/1726791124650713134?s=20
https://cointelegraph.com/news/what-next-binance-changpeng-cz-zhao
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
Agreed. Similar to what I have been saying before, Coinbase is Blockrock's partner for their ETF, being their custodian. Blackrock might have also invested in Coinbase's stock which might make them a stockholder and they might have voting rights on the exchange.
In any case, there might be another company in danger of being attacked and this is Tether. Blackrock has invested and also partnered with Circle the issuer of USDC. I will not be shocked if Blackrock is trying to kill the competition of their partners first before the final scheduled date of approval for their ETF.
https://cointelegraph.com/news/what-next-binance-changpeng-cz-zhao
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
Agreed. Similar to what I have been saying before, Coinbase is Blockrock's partner for their ETF, being their custodian. Blackrock might have also invested in Coinbase's stock which might make them a stockholder and they might have voting rights on the exchange.
In any case, there might be another company in danger of being attacked and this is Tether. Blackrock has invested and also partnered with Circle the issuer of USDC. I will not be shocked if Blackrock is trying to kill the competition of their partners first before the final scheduled date of approval for their ETF.
https://cointelegraph.com/news/what-next-binance-changpeng-cz-zhao
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
"Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date, which is scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard Jones is expected to consider the government’s motion on Nov. 27, possibly strengthening the bail requirements through additional bond conditions or delaying a decision."
__
I think that CZ will still pay off with a lot of money. And if you are wondering who will be in charge in the US market, then look at who BlackRock is investing in.
The correct answer is Coinbase!
CZ stepping down as the CEO by no means tells that Binance's future is dark or the exchange will be less popular as time goes on. This is not going to happen in my opinion. It is not easy to shut down binance worldwide when it is the most liquid exchange at the moment. Also, I don't think the Blackrock or others may overcome binance, outside the US binance market is too much strong.
Well, I don't know whether we have any reliable source of info on Binance actual liquidity, but media have been reporting on customers pulling out around $1 billion of assets after the announcement of the settlement was made.
I think Binance has been managed very well so far, with no evidence of them pulling any stunts like fractional reserves banking or similar things. But the agreed penalty is huge and we don't know what payment arrangements have been made. I'd imagine the payments would be spread over longer time, but the impact could still be crippling if the customers get spoofed and the volume drops significantly.
On top of that, as discussed earlier in this thread, Binance have not only had problems in the US but also in multiple other countries as well, so we don't know if there will be any further penalties and if Binance will ever return to markets they had to pull back from.
Jump to: