The sentencing hearing for CZ, the founder of the cryptocurrency exchange Binance, will take place on April 30th in a Seattle court in the United States. The Department of Justice has requested a 3-year prison sentence, while the Probation Office has recommended 5 months of probation. The outcome is still unknown, but caution is advised due to the potential impact on BNB price volatility.
Last November, Binance, the world’s largest cryptocurrency exchange, reached a settlement agreement with the Department of Justice, the Commodity Futures Trading Commission (CFTC), and other institutions. Binance pleaded guilty and agreed to pay a $4.3 billion fine. CZ admitted to charges of violating U.S. anti-money laundering laws, resigned as CEO of Binance, and paid a $175 million bail.
On Tuesday (4/30), CZ will face the final sentencing hearing, which will determine his length of imprisonment. The exact time is currently unclear, but considering the 15-hour time difference between Seattle and Taiwan, the results are expected to be announced late tonight or early tomorrow morning.
The Department of Justice has requested a 36-month prison sentence and a $50 million fine in its sentencing memorandum released last week. This is to demonstrate its strict regulatory stance against cryptocurrency money laundering activities. Tama Kudman, partner at Kudman Trachten Aloe Posner LLP, commented that although the previous plea agreement suggested a sentence of around 18 months for CZ, both the Department of Justice and CZ can appeal to extend or reduce the imprisonment term.
In contrast to the Department of Justice’s recommendation, the Probation Office has suggested a 5-month probation for CZ, leading to a significant disparity in their recommendations.
Some lawyers believe that CZ’s proactive admission of guilt and cooperation during the review process may earn him favor with the judge, resulting in a favorable outcome in the sentencing.
However, some lawyers express that although CZ has the ability to appeal his sentence, it may be challenging for him to succeed.
Since the news of the settlement agreement between Binance and CZ with the Department of Justice broke out in November last year, the BNB coin on the Binance platform has experienced significant fluctuations. It is reasonable to assume that the upcoming sentencing hearing may also cause price volatility for BNB. The direction of the price movement is uncertain, but investors are advised to carefully monitor the potential market changes.
At the time of writing, BNB is trading at $592.8, a decrease of 1.6% in the past 24 hours.
(Note: The article includes images that cannot be translated. Please refer to the original text for the images.)
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