It’s not just about the three years behind bars that the U.S. Department of Justice wants for Changpeng “CZ” Zhao, the legendary man behind Binance. They’re also hitting him with a whopping $50 million fine. But here’s where it gets interesting. CZ’s defense isn’t having any of it. They say slap him with probation, but keep him out of the clink. Why? Well, they argue the guy’s already owned up big time and coughed up a hefty fine.
On a late Tuesday, the DOJ laid it all out, pushing for 36 months in the slammer for CZ. His crime is allegedly letting Binance be a playground for breaking federal sanctions and laundering money. But hours after the DOJ made their move, CZ’s team hit back. They said no one in similar straits has ever been tossed in jail under these sorts of charges. They’re pitching for a probation stint that could have CZ chilling at his pad in Abu Dhabi instead.
The DOJ isn’t just thinking about CZ here. At least that’s what they claim. They’re looking big picture, saying this harsh penalty should warn anyone else dreaming of making a quick, illegal buck that the U.S. isn’t playing games. According to them, CZ raked in loads while playing fast and loose with the rules.
Originally, CZ was staring down up to 18 months as per his plea deal, but now, the DOJ wants to crank that up. They argue that CZ didn’t do squat to stop Binance from becoming a hotspot for dodgy deals, like mixing dirty crypto to hide where it came from or moving money from shady online deals.
Diving deeper, the DOJ is cheesed off because they think the sentencing guidelines are too soft for the kind of big-time rule-breaking they say CZ did. They’re peeved because CZ supposedly knew full well what was cooking at Binance and even egged it on.
CZ’s defense is swinging back, saying hold up, he didn’t even know the specifics of the shady money moving through Binance. They claim he was out of the loop on the real nitty-gritty of who was doing what with the money.
Their files point out that only a teeny part of Binance’s business was these sketchy transactions, making it a stretch to think CZ was orchestrating any of it.
On top of that, they’re arguing CZ isn’t likely to slip up again, pushing hard for probation over prison. They don’t want this to mess up his life more than it has to.
His crew, including some big names like former U.S. Senator Max Baucus, are all vouching for him, saying he’s not the villain some are painting him to be.
While all this legal drama unfolds, CZ can’t even jet back to Dubai to be with his partner and kids. He’s stuck because of all these DoJ shenanigans. And while CZ deals with his mess, Binance isn’t off the hook either. They’ve admitted to their own set of oopsies, agreeing to pay a $4.3 billion fine and to let a court watchdog keep an eye on them.
So, yeah. Now CZ and his legal eagles are getting for a showdown on April 30, hoping to convince the powers that be that probation, not prison, is the way to go. Fingers crossed they succeed.
