NewsletterUS DOJ Seeks New Order In Changpeng ‘CZ’ Zhao Suit, Is Long Criminal Sentence Likely?
Highlights
- US DOJ attorneys requests the court for a new proposed order in CZ lawsuit
- US attorneys seeks restrictive access to sensitive witnesses, financial records, and other documents
- CZ could face an 18-month prison term for money laundering charges
In the latest update in the United States vs former Binance CEO Changpeng Zhao lawsuit, the U.S. Department of Justice (DOJ) attorneys requested the court for a new proposed order. The move comes in response to latest proceedings, including CZ’s criminal sentencing postponed to April end. CZ faces an 18-month prison term for violating anti-money laundering(AML) rules, but DOJ attorneys are looking for a long-term criminal sentence.
DOJ Seeks Court Order in Lawsuit Against CZ
US attorneys moved for entry of a protective order considering the sensitive information in the CZ lawsuit, according to a motion for protective order dated February 20. DOJ stated that defendant Changpeng Zhao and defense attorneys do not oppose the request for a protective order.
Binance’s former CEO Changpeng Zhao pled guilty to failing to maintain an effective anti-money laundering program, cited US attorneys. Discovery materials provided include sensitive witness interviews, third party financial records, and third party internal business records.
DOJ set forth a proposed order along with this motion, restricting public access to any information. “The proposed protective order is not disseminated or distributed to anyone other than defense counsel, members of the defense team, and the Defendant,” as per the filing.
Moreover, the identities of sensitive witnesses will not be revealed in public filings, remaining sealed similar to the recent sealing of unredacted letters and medical records.
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CZ Faces Long Criminal Sentence
Anti-money laundering laws violations could see up to 20 years of incarceration, but experts earlier said CZ could face a prison sentence of 10 years. However, lawyers now believe CZ could face an 18-month prison term for money laundering charges.
CZ is free on a $175 million release bond, but restricted to travel to his home in the UAE due to flight risk until sentencing on February 23. The criminal sentencing date was recently delayed to April 30.
Changpeng Zhao stepped down as CEO with a $50 million fine and Binance agreed to pay $4.3 billion penalty. U.S. prosecutors have urged a federal judge in Seattle to accept a plea deal for Binance.
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