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Binance vs. DOJ: The Sanction CZ's Lawyers Want for Their Client

Mon 27 Nov 2023 ▪ 4 min of reading ▪ by Luc Jose A.
Getting informed ▪ Centralized Exchange (CEX)

In the agreement he signed with the U.S. Department of Justice (DOJ), Changpeng Zhao (CZ), the former CEO of the cryptocurrency exchange Binance, pleaded guilty. The settlement spares the company he founded from a trial that could have been its downfall. As for him, he will still face the strictures of the law. His defense attorneys have just proposed a rather unique sentencing option for their client.

Portrait of CZ, ex-CEO of Binance

A Brilliant Sentencing Option for the Former Head of Binance…

What will be the fate of Changpeng Zhao (CZ) at the end of the hearing that will sentence his culpable actions as CEO of Binance? The question is on everyone’s lips, prompting a flurry of speculation among cryptocurrency analysts.

It’s currently difficult to predict. Although prosecutors have requested 18 months of imprisonment, against the now former CEO of Binance. It’s not much compared to the 110 years of criminal confinement that Sam Bankman-Fried, the Mozart of crypto, is facing.

While awaiting their client’s fate, CZ’s lawyers want to go all out to obtain the least restrictive sentence possible for him. This is the understanding behind the sentencing proposal they disclosed on Friday, November 24th regarding him.

Essentially, it’s about a defense strategy, focused on one hand, on CZ’s detention, but under house arrest. The approach also relies on the personal accountability of the accused. Ingenious as it may be, the idea certainly has flair.

The defense strategy of CZ’s lawyers to keep their client out of jail

Based on Changpeng Zhao’s Judicial History

Let’s clear up any doubt right away: Changpeng Zhao has no criminal record! This is a major asset for the former CEO of the crypto firm Binance. An advantage that his lawyers want to leverage to get him off the hook.

This is at least what the ambivalent sentencing proposal they disclosed suggests. The idea is to claim that he is not a habitual offender, and this is his first offense.

In addition, his lawyers plan to argue that he enjoys a reputation characterized by a clean judicial record. Coupled with his influence in the crypto ecosystem and his willingness to face the repercussions of his actions, CZ should benefit from the leniency of the justice system. To this end, the latter must at least consider the possibility of deviating from traditional norms in sentencing in this particular case. An option that, if chosen by the judges, should allow the former CEO of Binance to avoid prison. The whole question is whether the judges will be favorable to this approach.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.