Binance founder Changpeng “CZ” Zhao’s counsel urges the court to grant probation, while CZ receives unprecedented support.
The defense team of Binance founder Changpeng “CZ” Zhao has petitioned the court for probation as he is a first-time, non-violent offender without the intent to cause harm to others.
According to CZ’s attorney, several factors, including the support of the crypto community, led probation to recommend a moderate downward variance.
Changpeng Zhao “CZ” Requests Probation
Former Binance CEO Changpeng “CZ” Zhao’s attorneys argue in a sentencing memorandum that Zhao should receive probationary terms.
Prosecutors in the United States seek a 36-month prison sentence at the April 30 sentencing hearing; however, CZ’s counsel has presented several justifications for probationary status.
- Nature and Circumstances of the Offense: CZ pleaded guilty to only anti-money laundering compliance failure, and the government didn’t allege him to any crime involving money laundering, fraud, theft, market manipulation or any unlawful conduct
- CZ Personal History and Circumstances Support Lenience: He is devoted to his family, built Binance as a force for positive change, and collaborated with law enforcement to fight crypto crime and track illegal transfers. Changpeng Zhao also committed to charity with humanitarian aid by Binance Charity and took education initiatives.
- Zhao Has Shown Extraordinary Acceptance of Responsibility: Probation Office described CZ conduct as “remarkable” and “exceptional” acceptance of responsibility. Voluntarily appeared from a non-extradition country to plead guilty to criminal charges, paid a fine of over $4.3 billion along with personal fine of $150 million, and stepped down as CEO of Binance and related entities.
- Precedent and the Need to Avoid Sentencing Disparities Warrant Probation: 18 U.S.C. § 3553(a) strongly favors probation, no similar defendants sentenced to prison term, and the CZ case similar to BitMEX prosecution where defendants served probation.
- Harsher Conditions for Noncitizen: CZ will unfairly face harsher conditions if imprisoned as compared to a US citizen, with home confinement in the UAE under a reputable U.S.-based global security firm seems appropriate.
- Remaining 18 U.S.C. § 3553(a) Factors Also Support Probation: Deterrence, protection to the public, needed training or rehabilitation, and seriousness of the offense is invalid.
Noting that there is no risk of recidivism, Zhao’s defense advocates probation rather than incarceration, which may involve home confinement at his residence in Abu Dhabi.
CZ Receives Industry Support
The cryptocurrency community has shown unprecedented support for either the release of CZ or a reduced sentence for admitting to AML violations.
The court has received hundreds of letters supporting Changpeng Zhao’s probation from CZ’s family, friends, and colleagues. Zhao is the founder of Binance.
Additionally, industry participants believe that CZ will receive a harsher 36-month sentence.
CZ received support from BitMEX co-founder Arthur Hayes and Tron founder Justin Sun.
Justin Sun said he was deeply moved after reading the letters, particularly those sent by Yi He.
