Former CEO of Binance, Zhao Changpeng, is set to be sentenced for his imprisonment term at the end of this month (4/30) after reaching a settlement agreement with the U.S. Department of Justice in November last year. On this occasion, CZ wrote a letter to the judge responsible for this case.
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CZ’s Apology Letter to the Judge
161 Support Letters from Family and Friends
Will CZ be sentenced to 3 years in prison?
Binance founder Zhao Changpeng (CZ) admitted in November last year to charges of violating U.S. anti-money laundering laws, resigned as CEO of Binance, and paid $175 million in bail. After months of waiting, it is expected that the length of his imprisonment will be determined at the sentencing hearing at the end of this month (4/30).
Just before the trial, CZ wrote a letter to Judge Richard A. Jones, who is responsible for this case, apologizing for his “wrong decision” and acknowledging that he needs to take full responsibility for his actions.
Looking ahead, he hopes to continue supporting blockchain technology startups and youth development.
In addition to CZ’s apology letter, there are also 161 support letters from his family, friends, and others, seeking leniency from the judge.
CZ’s sister, Jessica Zhao, former Managing Director of Morgan Stanley, stated that although her brother made a mistake, he has worked hard to help others in his life. She also mentioned the example of the FTX incident, emphasizing that CZ ensured that Binance never misused any customer funds.
Another Binance co-founder and mother of CZ’s three children, He Yi, wrote:
Zhao Changpeng’s children, Rachel and Ryan, who are studying at universities in the United States, also provided amusing anecdotes in support of their father and hoped that the judge would not define Zhao Changpeng’s character solely based on this incident.
One of the support letters came from Tigran Gambaryan, the compliance officer of Binance’s Financial Crimes Department, who is currently detained due to the dispute between Binance and Nigeria. He wrote the letter before his arrest on January 1, 2024.
Other support letters came from Max S. Baucus, former U.S. Ambassador to China, Jeremy R. Cooperstock, a professor at McGill University, Sean Yang, Managing Director of Morgan Stanley, and members of the ruling family of the United Arab Emirates, among others.
While CZ’s letters were being sent, the U.S. Department of Justice submitted a sentencing memorandum on Tuesday local time, arguing that CZ should be sentenced to 36 months in prison and pay a $50 million fine after admitting to violating the Bank Secrecy Act in November last year. The document states:
Originally, according to CZ’s plea agreement, the maximum sentence he could receive was 18 months in prison. However, the Department of Justice stated in this document that “the scope and consequences of Zhao Changpeng’s misconduct are significant,” so “increasing the penalty here is appropriate.”
According to U.S. sentencing guidelines, Zhao Changpeng faces a recommended sentence of 12 to 18 months for the charges, but the judge has the authority to impose a longer sentence.
The memorandum also criticized CZ for failing to implement an effective anti-money laundering program at Binance, where illicit actors have utilized the exchange in various ways, including:
Operating mixers to conceal the source and ownership of cryptocurrencies
Profiting from ransomware attacks
Transferring proceeds from the dark web, exchange hacks, and various internet-related scams
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