The U.S. Department of Justice shocked the currency circle! The former richest Chinese man may be jailed for 3 years

Former Binance CEO Changpeng "CZ" Zhao pleaded guilty to violating money laundering laws and asked a federal judge for a probation sentence. His legal team filed several declarations in support of his recommendation, including one suggesting he could serve time at the Federal Detention Center (FDC) SeaTac, Washington.

On April 23, the company filed with the U.S. Speaking from the United States District Court for the Western District of Washington in Seattle, Robert Palmquist said it was "highly probable" that if given prison time, Zhao would serve it at FDC SeaTac.

Palmer, a warden at the Washington facility from 2003 to 2009, called it a "prison with little natural light" and understaffed for the number of prisoners it holds. Palmquist said, "If Mr. Zhao is jailed […] being a public man of wealth and status, he would be exposed to the risk of threats to his physical and mental health, including but not least theft and extortion.".

Source: Courtlistener

Zhao would come across lawbreakers of all security levels and, given his naivety about prison life and his financial state, could be a target for any predator with high-security status. FDC Seatac, located directly south of the Seattle-Tacoma International Airport, and, according to the website, has 794 inmates, had earlier housed a Proud Boys member accused in connection with the Jan. 6, 2021, attack on the U.S.

Capitol, and Jim Bell, a 'crypto-anarchist.' Released in 2012, he was charged in the 90s with tax evasion, which related to the running of 'Assassination Politics,' which includes anonymous payments for individuals to order killing against government officials. Zhao's lawyers submitted a raft of letters from friends, family, and business leaders urging that the former boss be given a lenient sentence. Under U.S. sentencing guidelines, that means a judge could send CZ to federal prison for up to 10 years, but there is a guideline recommended sentence of 12 to 18 months for his specific charge.

The prosecutors asked for three years in jail and a $50 million fine. Following the conviction and sentencing of former FTX CEO Sam Bankman-Fried, CZ will be one of the highest-profile individuals in crypto to walk into a federal courtroom and find out whether a judge will grant him probation or send him to prison.

Former CEO Alex Mashinsky is set to go to trial in January 2025 on seven counts of fraud: securities and commodities.

CZ has largely not publicly commented on the charges since he pleaded guilty as part of a $4.3 billion settlement between US authorities and Binance in November 2023. In a letter to Judge Richard Jones dated February 2, Zhao apologized for his "poor decisions" in regard to Binance and said he was ready to stand accountable for his actions. The former Binance CEO is scheduled to return to court on April 30 for sentencing. He has been free to travel within parts of the U.S. on a $175 million bond since November.