CoinDesk Explores Reasons Behind Lenient Sentence for Binance’s Changpeng Zhao

Former Binance CEO Changpeng Zhao (CZ) was sentenced to four months in prison, a relatively short term attributed to his reputation, according to CoinDesk.

During the hearings, the judge, lawyers, and even prosecutors acknowledged that CZ was not a “typical defendant” in criminal cases. They viewed him as a philanthropist, a first-time offender, and a family man who surrendered to face the consequences.

“Frankly, everything I see in [Zhao’s] history and character is mitigating,” the judge stated.

He also recalled the letters of support sent by CZ’s friends, relatives, and colleagues.

A source from the U.S. Department of Justice noted that the Binance founder will be the first CEO imprisoned for violating the Bank Secrecy Act.

During the judge’s remarks, CZ leaned forward in his chair, nodding each time his offenses were mentioned. CoinDesk journalists perceived that he initially anticipated a short sentence.

The most compelling arguments came from Zhao’s legal team. The lawyers repeatedly reminded the judge that the defendant lived in the UAE and his vast wealth could have allowed him to live on the run. Instead, CZ made a deal with the prosecution.

In summary, the letters of support, his “extraordinary” cooperation with the government, and lack of a criminal record helped the former Binance CEO receive a relatively lenient sentence.

“The fact that you can place your name next to the largest cryptocurrency platform on the planet does not give you the right to choose which rules to follow,” the judge added.

Earlier, ForkLog gathered opinions from industry participants on CZ’s sentence. Many supported Zhao, while others expressed outrage, calling the decision a “glaring judicial error.”

As part of an agreement with the U.S. Department of Justice, the former head of Binance agreed to pay a $50 million fine and step down as the exchange’s CEO.

Richard Teng, the head of regional markets, succeeded him as CEO.