Is Changpeng Zhao being too harsh or too lenient?
While a portion of the crypto community has come to the defense of the billionaire, others argue that a four-month sentence is a severe miscarriage of justice.
First, let’s address the obvious irony. After years of disregarding FUD, fake news, and attacks as mere “4”, Changpeng Zhao, the former CEO of Binance, has been sentenced to four months in prison.
This verdict comes after the billionaire pleaded guilty to charges of facilitating money laundering on the world’s largest cryptocurrency exchange. However, it falls significantly short of the three-year sentence that prosecutors had sought due to Binance’s lack of money laundering controls, which allowed illicit funds from Iran and Cuba to pass through the platform.
The judge opted for leniency, considering that everything about Zhao’s history and characteristics had mitigating factors. During the sentencing hearing, the judge mentioned the numerous letters received in support of Zhao from friends and family.
On social media platform X, a significant portion of the crypto community reacted positively to the sentence. Former colleagues praised the judge’s fairness, while others called for unity within the industry. Some users shared interesting facts about Zhao’s upcoming incarceration, and inevitably, a few lighthearted posts acknowledged that both Changpeng Zhao and Sam Bankman-Fried would soon be behind bars.
Despite the relatively short sentence, the prosecution still considered it a victory. U.S. Attorney Tessa Gorman stated that they viewed the case as a win.
However, some of Zhao’s critics believe that the four-month sentence, which will be served in a low-security prison, is nothing more than a minor punishment. Reports suggest that the billionaire has been exploring new investment opportunities in AI while awaiting his fate and hinted at his plans for the future once he is released.
An anonymous former Binance employee, who left the company last year, expressed their belief that the sentence was too lenient. They also contemplated whether this verdict would have any negative consequences for the crypto exchange Zhao built.
Unlike Sam Bankman-Fried, whose sentence aimed to prevent him from operating a crypto business in the future, Zhao’s punishment does not have the same effect. In theory, he could return as CEO in three years’ time, according to the former employee.
David Gerard, a prominent crypto skeptic, argued that Binance and Zhao got off lightly. Others, like Better Markets, an organization focused on protecting American consumers from future financial crises, accused the Justice Department of deceiving the public in its handling of the case. Dennis Kelleher, the co-founder and president of the nonprofit, claimed that the sentence sends the message that “crime pays” and that Zhao’s strategy was to seek forgiveness rather than permission after knowingly breaking the law.
Zhao may be out of prison and ready to move on by the end of the year. During his time as the influential leader of Binance, he frequently dismissed legitimate criticisms of his business by retweeting “4” to those he disagreed with.
It remains to be seen what lessons, if any, will be learned once his sentence is served.
In other news, there is curiosity surrounding Binance’s decision to abandon Ordinals.
