Will Binance Founder Serve Prison Time? Here's What Experts Say About Changpeng Zhao's Money Laundering Case

By Giuliano De Leon

Apr 30, 2024 01:14 PM EDT

[UPDATE]: The former chief executive of Binance, Changpeng Zhao, was sentenced on Tuesday, Apr. 30, to four months in prison after pleading guilty. The sentence comes as a result of his violation of US money-laundering laws while leading the world's largest cryptocurrency exchange.

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Binance founder Changpeng Zhao will finally receive a sentence regarding his money laundering case. But, will the billionaire serve prison time? Here's what experts say.

Will Binance Founder Serve Prison Time?

According to CNBC's latest report, the Binance founder is headed to a Seattle courtroom on Tuesday, Apr. 30. In the hearing, he will learn whether he will be in prison for an extended sentence.

In November 2023, Changpeng Zhao stepped down as Binance's CEO after admitting guilty to allowing money laundering on the crypto exchange platform.

Because of this, many experts, including Neama Rahmani, a former federal prosecutor, believe that the Binance founder will serve prison time.

"This is a high-profile case , and the judge will feel pressure not to be soft during sentencing," the former federal prosecutor explained. He expects Zhao to be imprisoned for one to two years.

"For CZ, a first-time nonviolent offender, the sentencing guidelines call for an advisory range of 10 to 16 months," said Branden Perry, a former CFTC senior trial lawyer.

For How Long Will Binance Founder Be Imprisoned?

Coin Telegraph reported that US prosecutors believe the Binance founder should be imprisoned for three years. In a court filing on Apr. 23, American prosecutors said that Zhao should serve 36 months in prison since he pleaded guilty to violating US laws against money laundering.

Various reports stated that federal sentencing guidelines set the maximum prison sentence against the Binance founder to 18 months. However, US prosecutors want to double this sentence, saying that Changpeng Zhao deserves to be imprisoned for 36 months.

In addition to his lawyers, over 160 supporters of Changpeng Zhao also sent letters to the court to appeal for mercy. These include his family, Emiraty royalty, and Binance users.