Zhao Changpeng's sentence opinions differ, with the prosecutor seeking 3 years, while the probation office only recommends 5 months of imprisonment.
Binance founder Changpeng Zhao (CZ) sentencing hearing is set to take place on April 30. The initial ruling is expected to be announced in the early hours of May 1, Taiwan time.
Table of Contents
US Probation Office Recommends 5 Months of Imprisonment
The current issue is that, according to CZ's plea agreement at the time, he can only appeal sentences over 18 months, but before that, the Department of Justice and CZ's legal representatives can still argue the sentence in court.
In the sentencing memo released by US prosecutors last week, they argued that CZ should be sentenced to 36 months in prison, while the defense requested home confinement and probation.
Additionally, according to the defense documents from last week, the US Probation Office had recommended only 5 months of imprisonment in its pre-sentencing report, showing discrepancies in expectations from all parties.
US Prosecutors Seek 3-Year Prison Term for Zhao Changpeng, Twice the Maximum Federal Sentencing Guidelines
CoinDesk compiled many predictions and opinions from professionals.
Is the DOJ Setting an Example?
Tama Kudman, partner at law firm Kudman Trachten Aloe Posner, stated that the Department of Justice's request for a longer sentence seems to send a strong message that the DOJ is cracking down on money laundering, while CZ appears to be taking it lightly.
Although the 36-month sentence recommended by the DOJ last week surprised many, Tama Kudman believes that this does not mean the DOJ has abandoned the initial agreement of 18 months, and the final outcome is still uncertain.
Sentence Guidance for SBF Over 100 Years, Prosecution Seeks 50 Years, Ultimately Sentenced to 25 Years
An anonymous lawyer used SBF as an example, where the sentencing guideline calculation resulted in over 100 years, but the prosecutor sought 50 years, with the final sentence being 25 years of imprisonment.
SBF's Last Words in Court Before Being Sentenced to 25 Years: Apologies to FTX Colleagues
Additionally, former BitMEX CEO Arthur Hayes and CZ were both charged with violating banking secrecy laws and pleaded guilty, with Hayes ultimately being sentenced to 6 months of home confinement and 2 years of probation.
Co-Founder of BitMEX Arrested! US Commodity Exchange Accuses Him of Multiple Charges, Bitcoin Plummets
DOJ Seeks Harsher Sentences, Is the Plea Agreement Not Beneficial?
Similarly, the anonymous lawyer pointed out that for the DOJ, requesting longer sentences has almost no downside, but this may lead to others being more cautious about so-called "plea agreements" in the future and seriously considering the potential sentences the DOJ may seek.
Furthermore, the DOJ believes that CZ should not receive leniency for cooperating with the investigation voluntarily. This could become a point of contention as CZ's lawyers believe he should receive leniency for pleading guilty and cooperating.
Finally, the lawyer mentioned that although CZ can appeal sentences over 18 months, it would be difficult to succeed as appellate courts rarely overturn district court judgments, even if the penalty is deemed excessive.