While some in the cryptocurrency community have come to the defense of the billionaire, others are denouncing the four-month sentence as a severe miscarriage of justice.
Let’s address the glaring irony first. Despite years of brushing off fear, uncertainty, and doubt, fake news, and attacks as mere “FUD”, Changpeng Zhao, the former CEO of Binance, has been handed a four-month jail term. This came after he pleaded guilty to charges of facilitating money laundering on the largest crypto exchange in the world.
The sentencing fell short of the three-year term that prosecutors had sought, citing a lack of money laundering safeguards that allowed illicit funds from Iran and Cuba to pass through Binance. The judge decided on leniency, considering CZ’s history and characteristics as mitigating factors. The courtroom was flooded with letters from friends and family in support of Zhao.
Upon hearing the verdict, many in the crypto community reacted positively. Former colleagues commended the judge for being fair, while others called for unity in the industry. Some shared tidbits about Zhao’s impending imprisonment, with a few light-hearted posts acknowledging that he and Sam Bankman-Fried will soon share the same fate.
Despite the relatively short sentence, the prosecution considered the case a victory. U.S. Attorney Tessa Gorman asserted that justice had been served. However, critics argue that a four-month stint in a low-security prison is merely a slap on the wrist.
Reports suggest that Zhao is exploring new investment opportunities in AI while awaiting his release. A former Binance employee, speaking anonymously, expressed disappointment in the leniency of the sentence and its potential impact on the exchange.
Unlike Bankman-Fried, whose sentence aimed to prevent him from reentering the crypto industry, Zhao could potentially return as CEO in three years. This discrepancy has raised concerns among industry observers. Critics like David Gerard believe that Binance and Zhao received preferential treatment.
Some are outraged by the outcome of the case. Better Markets, a nonprofit focused on safeguarding consumers from financial crises, accused the Justice Department of deceiving the public. Co-founder Dennis Kelleher criticized the lenient punishment, suggesting that it sends the message that “crime pays.”
Despite the controversy, Zhao could be released by the end of the year and resume his activities. Known for brushing off criticism during his tenure at Binance, it remains to be seen if any lessons will be learned from his time behind bars.
In a separate development, there are questions surrounding Binance’s decision to abandon Ordinals.