7 months ago
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Former Binance CEO alias CZ will be sentenced on April 30, with the DoJ seeking a harsher punishment of 3 years.
As the sentencing for Binance co-founder Changpeng Zhao (CZ) approaches, the former crypto leader has written an apology letter to the presiding Judge from the Western District of Washington, Richard A. Jones. According to the apology letter, CZ noted that he has accepted full responsibility for the poor decisions during his tenure at Binance.
“There is no excuse for my failure to establish the necessary compliance controls at Binance,” the apology letter said.
CZ further assured the court that this would be his only encounter with the criminal justice system. As Coinspeaker explained, the United States is seeking a harsher punishment for CZ, which entails a three-year sentence in addition to a $50 million penalty. Notably, Zhao pleaded guilty under an agreement with the United States government, which brushed off his right to appeal any sentence of more than 18 months.
Binance Team Supports CZ
In addition to the apology letter, there were 161 other letters from CZ’s family and friends seeking leniency from the judge.
According to He Yi, a Binance co-founder, CZ was bound to encounter such blind spots as he had never led such a huge company. Furthermore, the United States Congress has not yet passed clear crypto regulatory laws.
“If the cryptocurrency industry is compared to the Wild West, then CZ is the guardian of this wilderness. Even the U.S. has not decided how to regulate and define this industry,” Yi noted.
Another letter of support was written by Tigran Gambaryan, Binance’s Head of Financial Crime Compliance and a former special agent in the US Department of Treasury, who is currently detained in Nigeria.
“While acknowledging CZ’s prior missteps, I can attest to his integrity, business insight, and philanthropic actions have had a ripple effect, influencing not only Binance’s corporate philosophy but also positively impacting lives globally,” Gambaryan wrote.
Other support letters came from key members of the global political class including members of the ruling family in the United Arab Emirates. Max S. Baucus, former US Ambassador to China, Professor Jeremy R. Cooperstock, McGill University, Associate Professor Ronghui Gu, Columbia University, and Morgan Stanley Managing Director Sean Yang also wrote a supportive letter to the Judge.
Market Picture
The upcoming sentencing of CZ will mark a new era of cryptocurrency regulations around the world. Moreover, the cryptocurrency industry has grown to over $2 trillion valuation and attracted major hedge funds led by BlackRock Inc (NYSE: BLK).
With CZ having ceded power over Binance, the upcoming sentencing will have minimal impact on the BNB ecosystem. As of this writing, BNB price traded around $601, up approximately 14 percent in the past seven days.
