More from Binance founder’s sentencing hearing
“When I hear the government discussing the crime here, they don’t seem to be discussing the actual crime,” which is that CZ pleaded guilty to not having an anti-money laundering program. The sanctions violations are irrelevant.
They’re recommending a custodial sentence of 5 months, which they feel is enough to deter defendant and others “without being unnecessarily harsh.” It would be one of the longest sentences for such conduct in this country.
He’s been listening to Mosely with his eyebrows up, forehead furrowed, at times frowning.
The government’s request is double the top end of the guideline range. Wouldn’t that create a disparity in sentencing? Mosley argues that the disparity is in the magnitude of the conduct, and because CZ is an individual who directed it.
“An outcome where a defendant makes a plan to violate US law, does so on a massive scale, makes extraordinary amounts of money” and then gets to go home to make money after getting caught means another rational actor might take that chance.
“The brazen nature of this conduct does require a sentence that includes a meaningful period of incarceration.” The scale of this crime is “magnitudes of order” greater than other offenses, Mosley says.
As a result of asking forgiveness, not permission, Changpeng Zhao made himself a billionaire and celebrity, Mosley says.
We are now going to hear from the government, then probation, then the defense. No one else will speak, as far as we know.
The prosecution is trying to get some enhancements on CZ’s sentencing. We will be sorting out this objection before we go farther.
We’re delayed until 9:30AM PT / 12:30PM ET.
He’s taking a seat with his legal team. Judge isn’t on the bench yet. CZ’s in a dark blue suit with a light blue tie, and he looks tense.
And there’s motion in the courtroom. The hearing is expected to begin at 9AM PT.
Unlike with the Sam Bankman-Fried trial, public interest in the sentencing of Binance founder Changpeng Zhao seems to be low. I did not spend hours standing in line this morning. And as far as I know, CZ is not yet in the building.
In a filing on Tuesday, the DOJ says Changpeng Zhao’s alleged crimes “warrant meaningful prison time” and that the three-year term will “not just send a message to Zhao but also to the world.” Zhao’s lawyers followed up with a filing shortly after, saying he should just be sentenced to probation.
A judge ruled on Thursday that Zhao — who resides in the United Arab Emirates — must stay in the US ahead of his February 2024 trial, citing his “enormous wealth and property abroad” as well as a lack of ties to the US.
Zhao stepped down as CEO of Binance in November and pleaded guilty to breaking anti-money-laundering laws after a months-long investigation from the US government.
Last week, Changpeng Zhao agreed to step down as CEO of the massive cryptocurrency exchange Binance — part of a plea deal with the DOJ for breaking anti-money-laundering laws.
However, one remaining disagreement has been where he will spend his time while awaiting sentencing for the felony charges. Despite agreeing to a $175 million bond, prosecutors consider him a flight risk and wanted to keep him in the US. That question isn’t fully answered, but Reuters reports a judge ruled CZ is staying the US for now while the court considers it, instead of being allowed to return to the UAE.
