In a surprising development, the U.S. Department of Justice (DOJ) has revealed that prosecutors may argue for a 10-year prison sentence for cryptocurrency billionaire Changpeng Zhao (CZ) when he is sentenced for violating the Bank Secrecy Act. Until now, legal experts had predicted that CZ would receive a minimum-security prison sentence of 12–18 months, with his defense team arguing for no jail time or a light sentence consisting of a combination of prison time, home detention, and probation.
DOJ Seeks Strict Travel Restrictions for CZ
The DOJ’s disclosure came in a late Saturday night court filing, which also called for CZ to be restricted to living in the continental United States and prohibited from traveling to his home in the United Arab Emirates until his sentencing. The DOJ argued that CZ faces a potential sentence of up to 10 years in prison, which it said would be “significant” to him given that he has never spent a day in custody and has a family.
The sudden revelation by the DOJ has raised eyebrows, as it is highly unusual for a multi-billionaire defendant who has pleaded guilty, faces possible prison time, and resides in a country that does not extradite its citizens to the United States to be allowed to travel and live abroad before their sentencing. In most cases, such defendants are detained at the very least or restricted from leaving the country.
According to the legal expert, CZ’s crimes are not minor regulatory infractions, he pleaded guilty to violating anti-money laundering laws and agreed to pay a record $4.3 billion fine. The company’s violations include failure to implement programs to prevent and report suspicious transactions with terrorists, ransomware attackers, money launderers, and other criminals. By failing to adhere to anti-money laundering and sanctions obligations, CZ enabled illicit actors to transact freely on their platform.
At this point, it is uncertain whether Judge Richard A. Jones will allow CZ to travel to the UAE before his sentencing. During his initial bail hearing, Magistrate Judge Brian Tsuchida set a deadline of tomorrow for reviewing his bail order. It’s possible that Judge Jones could compromise by adding additional bond conditions, strengthening bail requirements, or requiring increased communication and representation from CZ’s counsel. Alternatively, he could delay his decision or order further investigatory measures. The outcome of this matter will not be known until Judge Jones makes a ruling.
Source: https://coinpedia.org/news/doj-ups-the-ante-crypto-billionaire-cz-may-face-10-years-in-prison/