Binance CEO CZ sentenced to four months in prison, BNB price slightly recovers

Source Fxstreet
  • Judge Richard Jones sentences Changpeng Zhao to four months in prison.
  • CZ's team didn't ask for house arrest, just proposed it as an option. Actual ask is for probation.
  • BNB and the crypto market could recover following CZ's short sentence.

Binance (BNB) founder and ex-CEO Changpeng Zhao (CZ) will spend four months in jail after Judge Richard Jones sentenced him on Tuesday. CZ earlier pleaded to one count of violating the Bank Secrecy Act in November 2023.

Read more: BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing

CZ to spend four months in prison

After pleading guilty to one count of violating the Bank Secrecy Act earlier in November 2023, the former Binance CEO was sentenced to four months in prison by Judge Richard Jones for failure to establish robust anti-money laundering procedures. The judge rejected the DoJ's 36-month sentence request to land at the decision. He stated, "There needs to be an effort by this court to impose a sentence that's appropriate and reasonable."

Considering CZ pleaded guilty and cooperated with authorities, the Federal sentencing guidelines set a maximum sentence of 18 months — under normal circumstances, such a charge would carry up to 10 years in prison.

The DoJ requested a three-year sentence, arguing that the Binance founder willfully allowed illegal trades on Binance, failed to report thousands of suspicious criminal activities and garnered profits of around $1.6 billion from such transactions. In contrast, CZ's team requested probation and proposed house arrest as an option.

Also read: Binance founder Changpeng Zhao could face three-year jail time

When the hearing got underway, Judge Richard Jones disagreed with the DoJ's request to extend the sentence to three years, stating, "There's no evidence that the defendant was ever informed of illegal activity," according to reporter Nikhilesh De. In response, the DoJ argued that CZ was aware of illicit activity.

While the judge seemed to agree with the 10-16 months prison sentence and 1-3 years supervised release recommended by the Probation Office, the DoJ attorney argued otherwise. The DoJ stated that it would serve as an incentive for others to break the law on a large scale.

The defense attorney reiterated CZ's and Binance's compliance throughout the process. Binance agreed to pay $4.3 billion in fines, while CZ would pay $50 million — a fraction of his $33 billion net worth, according to Forbes.

After several exchanges, the judge rejected the DoJ's request for three years and sentenced CZ to four months in prison.

Read more: Binance cuts off $10 billion venture capital arm, BNB price takes 6% loss

CZ's sentencing comes off the back of former FTX CEO Sam Bankman-Fried’s 25-year prison sentence for his role in the collapse of the FTX exchange.

In the immediate aftermath, BNB is showing recovery signs after bouncing from a low of $556.20 to $570.60.

BNB/USDT 1-hour chart

BNB/USDT 1-hour chart

The general crypto market is also warming up to the news, considering CZ's and Binance's wide influence in the space. Many expect the crypto market to see a slight recovery from recent dumps following CZ's short sentence.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: US August PCE Imminent, Will Gold Prices Rise or Fall Short-Term?As of the European session on September 30, gold prices (XAUUSD) continued to recover after a sharp drop earlier this week, reclaiming $4,200 intraday, with the latest price trading near
Author  TradingKey
11 hours ago
As of the European session on September 30, gold prices (XAUUSD) continued to recover after a sharp drop earlier this week, reclaiming $4,200 intraday, with the latest price trading near
placeholder
【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
Author  Suzie
13 hours ago
The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
placeholder
【Daily Brief】The dollar ground higher for six days — and the AUD fell 2% in the very week the RBA hiked to a 15-year highThe dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
Author  Irene Q.
14 hours ago
The dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
placeholder
WTI remains below $90.00 due to Middle East export recoveryWest Texas Intermediate (WTI) oil price edges higher after registering nearly 4.5% losses in the previous day, trading around $88.50 per barrel during Asian hours on Wednesday. Crude oil prices eased as energy flows from the Middle East showed clear signs of improvement.
Author  FXStreet
19 hours ago
West Texas Intermediate (WTI) oil price edges higher after registering nearly 4.5% losses in the previous day, trading around $88.50 per barrel during Asian hours on Wednesday. Crude oil prices eased as energy flows from the Middle East showed clear signs of improvement.
placeholder
Gold Price Forecast: Gold Plunges to Seven-Week Low, Can $4,100 Hold? Spot gold (XAUUSD) plunged 4% on Monday to close at $4,114.93 per ounce, hitting an intraday low of $4,110.80, its lowest level since August 5. Heading into Tuesday's Asian trading sessio
Author  TradingKey
Yesterday 09: 16
Spot gold (XAUUSD) plunged 4% on Monday to close at $4,114.93 per ounce, hitting an intraday low of $4,110.80, its lowest level since August 5. Heading into Tuesday's Asian trading sessio
Related Instrument
goTop
quote