Original author: Wu said blockchain
Original source: Wu said blockchain
Primary Sources:
https://twitter.com/nikhileshde/status/1785353891871383864
https://www.theverge.com/2024/4/30/24144807/binance-founders-sentencing-hearing-liveblog
CZ was eventually sentenced to four months in prison. This is well below the 36 months required by the Department of Justice.
Throughout the hearing:
CZ arrived early in the courtroom and was taking his seat with his legal team. CZ looked nervous in a dark blue suit and a light blue tie. However, due to the judge's personal matters, the hearing was postponed to 9:30AM PT / 12:30PM ET.
The first piece of heavy information: Judge Jones said he did not agree with the Justice Department's request for an extension of sentence. Judge Richard Jones said he disagreed with the Justice Department's request to strengthen sentencing guidelines to extend the sentence from 18 months to 3 years, and there was no evidence that the defendant (CZ) was informed of illegal activity.
DOJ attorneys argued that the judge should be able to infer that CZ was aware of the illegal activity, citing a previous case in which the judge inferred that the defendant knew about the illegal activity.
Judge Jones said he basically agreed with the probation office. The total level is 12, which will result in 10-16 months in prison and 1-3 years of residential surveillance. The Department of Justice, the defense, and CZ will now be heard before a final verdict.
The judge categorically denied the Justice Department's request for an extension of the sentence. Justice Department attorneys said CZ deliberately attempted to access the U.S. financial system. "Breaking the law is at the heart of his efforts, and we're not speculating here, as Mr. Zhao himself said — seeking forgiveness, not permission," he said. ”
DOJ attorneys said CZ should be commended for voluntarily surrendering, but that was reflected in the plea agreement. "If Mr. Zhao deliberately and intentionally planned to violate U.S. law in order to build the world's largest cryptocurrency exchange and get rich in the process, he would not have to face imprisonment...... Then no one will face imprisonment, and the Bank Secrecy Act will effectively become a dead letter. ”
"We are not implying that Mr. Zhao is Sam Bankman-Fried or that he is a monster," the DOJ attorney said, adding that their advice was not directed at CZ as a person.
"Mr. Zhao and Binance did encourage a boost in compliance, but this was after Binance was discovered," the DOJ attorney said...... This is what they are supposed to do...... While commendable, this is not enough to justify probation here. "The probation sentence here will motivate others to break the law and do so on the largest scale possible." ”
Judge: Your proposal is twice as much as the penal guidelines, and will this lead to an unfair sentence?DOJ: No defendant has such a great deal of responsibility; "We don't think it would amount to an unfair sentence...... Injustice lies in the gravity of the act. ”
Judges continue to show strong skepticism about the DOJ's argument seeking a longer sentence, asking for specific legal grounds and other issues. DOJ attorneys continue to emphasize that the verdict must reflect the seriousness of the crime.
CZ wasn't happy about that. He had been listening to the Ministry of Justice, his brow furrowed, his forehead furrowed, and he frowned from time to time.
The probation department spoke that they recommended a prison sentence of 5 months, which they believe is enough to deter defendants and others "without being too harsh." This will be one of the longest sentences for such acts in this country.
The defense stated, "When I hear the government discussing the crime here, they don't seem to be discussing the actual crime," and that's CZ admitting that there is no anti-money laundering procedure. Sanctions violations are irrelevant.
Now it is another defense lawyer who speaks, who said CZ's mother, son, nephew and sister were present. He pointed to the letters in support of CZ, mentioning that CZ came to the United States. He contrasted another case in which one of the defendants spent 4.5 years protesting extradition: "[CZ] didn't do that. He chose to come here. ”
The judge is now asking defense attorneys questions, including verifying whether CZ would benefit from continuing to own Binance.
The defense said he had no control.
The defence stated that all factors supported a reduced sentence (a lighter sentence).
Judge: The probation department still recommends 5 months, do you agree?
Defense: I agree, but I think the probation department mentions 5 months and then lists 6 factors that you might consider using to reduce that period. Defense lawyers recommended that CZ be given a suspended sentence, not a prison sentence – a verdict very similar to that of BitMEX co-founder Arthur Hayes, who pleaded guilty to the same crime in 2022 and was sentenced to six months of house arrest and two years of probation.
There was a relatively lengthy back-and-forth discussion about precedent and Binance's own history, with the judge asking if the defense was implying that Binance had implemented KYC/AML without law enforcement involvement, which the defense said was at least "long before the settlement."
Again, the defense pointed out that CZ came to the U.S. voluntarily and not stayed in the UAE (DOJ previously stated that this was commendable, but another possibility was that CZ became a fugitive).
CZ spoke. He began by saying: "I'm sorry" and said he wanted to take responsibility for his "mistakes". He noted that Binance has implemented KYC/AML procedures and is working with the U.S. government. "It seems to me that I want to do everything possible before I step down as CEO. ”
"Everything I have seen about your history and characteristics is of a mitigating and positive nature," the judge said. The court acknowledged that he came to the United States voluntarily, had not previously violated the law, and that he had taken "unconventional and significant steps" in his cooperation with law enforcement. But the nature of the incident was "irritating".
The judge said he read every letter submitted (161) because "it's important to know who you are." The letters portray a person driven by your drive, passion, and drive, and the judge said: You risked your entire net worth to make Binance successful. It is also clear from the letter that you are a dedicated family man.
The judge said CZ had the people, resources, and "money" to comply with U.S. regulations, but he "failed on that opportunity." The judge said: "After this painful lesson, you have the ability and the will to turn your ways. "I think it's moving into the actual sentencing phase now.
The judge again denied the Justice Department's 36-month request that "the court needs to work to make an appropriate and reasonable decision," the judge said. The judge sentenced him to four months in prison.