Changpeng Zhao’s Defense Calls for Probation in Money Laundering Case

• CZ Zhao’s legal team requests probation ahead of the April 30 sentencing.
• The defense emphasizes Zhao’s first-time, non-violent offender status.
• Advocates propose home confinement in Abu Dhabi to prevent re-offending.

While prosecutors seek a 36-month prison term, Binance former CEO Changpeng Zhao’s “CZ” defense has submitted a sentencing memorandum highlighting several reasons their client should be granted probation.

CZ’s legal team has asked the court to grant him probation after he pleaded guilty to money laundering charges. This request comes before the sentencing hearing scheduled for April 30. 

The defense argues that Zhao is a first-time, non-violent offender convicted solely of anti-money laundering compliance failure. CZ’s team stressed that the government did not accuse him of additional financial crimes such as “money laundering, fraud, theft, market manipulation, or any comparable form of unlawful conduct.”

Zhao’s attorneys also highlighted his background and commitment to societal well-being as grounds for leniency. The defense stated that CZ built Binance “as a force for positive change in the world.” In addition, they pointed to his involvement in charitable endeavors, including contributions to humanitarian aid worldwide and education initiatives through Binance Charity.

The defense further noted Zhao’s “remarkable” and “exceptional” acceptance of responsibility, indicating several instances as evidence of his deep remorse. These include a voluntary guilty plea, cooperation with the government, a $4.3 billion fine, and his decision to step down from his CEO position at Binance and related entities. 

Furthermore, CZ’s defense asserted that probation is a fair and just outcome, citing legal precedents such as the BitMEX prosecution, where defendants were granted probation instead of imprisonment. The team also expressed concerns about potential sentencing disparities and the potentially harsher conditions non-citizen defendants may face in prison, highlighting the need for a balanced and equitable approach.

In proposing probation, the defense suggested the possibility of Zhao’s home confinement at his Abu Dhabi residence, noting that this arrangement would mitigate any risk of re-offending.

Zhao’s defense advocated for probation over imprisonment, contending that it would address pertinent factors outlined in 18 U.S.C. § 3553(a) while serving the interests of justice and fairness.