SEC vs Binance

[zasad@]

I would like to discuss one point.
Zhao is awaiting trial in the US at the end of February. Previously, you read the news that the US government banned Zhao from leaving the country until a court decision and did not even let him out to see a sick relative on a huge bail of 4.5 billion dollars.

Why?
If Zhao does not come to court, he will lose a lot of money and will be wanted.
Is Zhao's fate now being decided or has it already been decided?

Is this a form of pressure or will Zhao get a prison sentence?

[stompix]

Why?

Because simple logic! He has no family, he has no assets in the US , he is not a citizens and all he put down as a guarantee was equity in a foreign company not based in the US but still under his total control. Do you think any country would have let him go?

did not even let him out to see a sick relative

Yeah right, this thing wouldn't be believed even on this forum but by a judge, we had this thing in our country before we joined the EU, every time an official was arrested for fraud he suddenly got ill, we even nicknamed the anti corruption department the cancer screeners as they were finding more cases in their arrest that a doctor in a hospital.
How much are you willing to bet that CZ "relative" has miraculously got better and got out hospital the moment poor CZ couldn't get there?

[zasad@]

Why?

Because simple logic! He has no family, he has no assets in the US , he is not a citizens and all he put down as a guarantee was equity in a foreign company not based in the US but still under his total control. Do you think any country would have let him go?

did not even let him out to see a sick relative

Yeah right, this thing wouldn't be believed even on this forum but by a judge, we had this thing in our country before we joined the EU, every time an official was arrested for fraud he suddenly got ill, we even nicknamed the anti corruption department the cancer screeners as they were finding more cases in their arrest that a doctor in a hospital.
How much are you willing to bet that CZ "relative" has miraculously got better and got out hospital the moment poor CZ couldn't get there?

Okay, I will try to prove to you that the fact of collateral is not important. I am sure that CZ came to the US to be tried and agreed to pay a huge fine because he entered into an agreement with the US government.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.

I think that new circumstances have appeared in the case, and now CZ is under the influence of the US judicial system.

[safar1980]

Binance founder CZ’s sentencing date postponed to late April
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.

The “notice of rescheduled hearing” was filed in a Seattle Federal Court on Feb. 12. Zhao was originally due to be sentenced on Feb. 23 after pleading guilty to money laundering charges. He is expected to face up to 18 months in prison.

However, a Nov. 24 filing by the prosecution indicated that he may face a harsher punishment than initially expected.

“The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee. The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years.”

[stompix]

Okay, I will try to prove to you that the fact of collateral is not important.

But you were the one who claimed that the the collateral was the one who would guarantee that CZ would have returned even with a conviction pending. How come that right now you want to prove the opposite?

I am sure that CZ came to the US to be tried and agreed to pay a huge fine because he entered into an agreement with the US government.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.

Yeah, he agreed to let the US  government do as it please with him!
Yu know what the deal of pleading guilty means? That he has no choice when the ruling is served, the only way to appeal would be for him to be granted a new trial under the not guilty defense, meaning a far longer conviction. So he basically came to the country, signed up for a deal that will remove his appeal no matter what the sentence is and gave up almost eveything just, so to not be hunted down and still be brought in front of a judge.
But everything is #safu!

Binance founder CZ’s sentencing date postponed to late April
The criminal sentencing for Binance founder and former CEO Changpeng “CZ” Zhao has been pushed back to April 30.

Looks like they enjoy slow cooking him! Probably the DOJ flexing its muscle for show  as message he's done for , this was like the final warning that they can toy with him as they please, probably the lower 6 month sentence that will be cut to 3 for first time offense in minimum security, then he will go and enjoy his life but without touching an exchange or crypto again.

[zasad@]

Okay, I will try to prove to you that the fact of collateral is not important.

But you were the one who claimed that the the collateral was the one who would guarantee that CZ would have returned even with a conviction pending. How come that right now you want to prove the opposite?

I am sure that CZ came to the US to be tried and agreed to pay a huge fine because he entered into an agreement with the US government.
If an agreement has been concluded, then the trial will be formal. You will agree that CZ would not have come to the USA without agreements.

Yeah, he agreed to let the US  government do as it please with him!
Yu know what the deal of pleading guilty means? That he has no choice when the ruling is served, the only way to appeal would be for him to be granted a new trial under the not guilty defense, meaning a far longer conviction. So he basically came to the country, signed up for a deal that will remove his appeal no matter what the sentence is and gave up almost eveything just, so to not be hunted down and still be brought in front of a judge.
But everything is #safu!

I want to say that the fact that CZ was refused to be released from the country on a huge bail and the trial was postponed until the end of April only means that CZ’s deal with the US government has fallen through.
Of course, under the terms of the deal, CZ must plead guilty to all charges. The second main condition of the deal is to provide complete and truthful information to the US government.
I believe that new circumstances have emerged in this case that play against CZ. Therefore, the US authorities gave him time to think before the Bitcoin halving
And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.

[stompix]

And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.

There is zero chances of him being handed a life sentence. Zero!
The maximum maximum what the prosecutors can ask for on all charges combined would be ten years and that would be on all aggravating circumstances, but him pleading guilty in the first case cuts that!

Zero chances for a life sentence, close to zero for the maximum  10 years and probably not even half for the 18 months.
I doubt it will be more than 6 months and those will probably be in a FPC, some of those are way better than the housing in 80% of the world, not Norway but still way better than what people think of prisons.

[zasad@]

And if he doesn’t agree to the deal, the jury will probably give him more than one life sentence.

There is zero chances of him being handed a life sentence. Zero!

This is where you are wrong. 50% chance that there will be life imprisonment and 50% chance that there will be no life imprisonment

But to be serious, I think the American intelligence services have collected a lot of incriminating evidence on CZ and in case of refusal of the deal, the prison term could be close to life imprisonment.

[stompix]

This is where you are wrong. 50% chance that there will be life imprisonment and 50% chance that there will be no life imprisonment

So are you willing to bet a coin on the life imprisonment? I'm all ears!
Remember, CZ is not Navalny tripping on a wet towel in some prison and dying of 30 billets in his back!

Hayes was accused of exactly the same with Bitmex, he did the same thing, surrender to the US coming to Hawaii, release on bail but not allowed to flee the country, he had no priors so he was sentenced for six months house arrest and just  two years probation. Belo did the same, came to surrender got a probation offense, after one year he was allowed to go to Hong Kong, and that was that!

Again this is the DoJ flexing its muscle and telling them to play nicely and they will get treated nicely, be some sort of wanna be rebel and loud mouth rascal and you're going to get it!

But to be serious, I think the American intelligence services have collected a lot of incriminating evidence on CZ and in case of refusal of the deal, the prison term could be close to life imprisonment.

On what accusation?
You need to accuse somebody of a charge that comes with life imprisonment if found guilty!
There is none that has this sentence in the current prosecution!

[zasad@]

On what accusation?
You need to accuse somebody of a charge that comes with life imprisonment if found guilty!
There is none that has this sentence in the current prosecution!

If CZ is tried in the US for financial crimes, I agree that he will receive no more than 18 months of house arrest.
https://www.bloomberg.com/news/articles/2024-02-17/bahamas-bank-deltec-accused-of-giving-sbf-secret-credit-to-buy-tether

But if the deal doesn’t go through, then I can only assume that he could be tried on other charges related to the financing of terrorism. And this is not just one life sentence.

https://abc7chicago.com/israel-hostages-binance-crypto/14378652/
"An American woman freed after being held hostage in Gaza and the families of two men killed in the Oct. 7 attack in Israel sued Binance, the leading cryptocurrency exchange, which they accused of providing a funding mechanism for Hamas."

[safar1980]

Judge Signs Off on Binance's $4.3B Plea Deal With U.S. Prosecutors

A federal judge has signed off on crypto exchange Binance's $4.3 billion plea deal with the U.S. Department of Justice.

During a sentencing hearing Friday, Judge Richard Jones of the U.S. District Court for the Western District of Washington approved the top-line fine itself, though he did not yet sign off on any monitor for the exchange. Bloomberg first reported the news earlier Friday.

[zasad@]

https://www.reuters.com/legal/us-seeks-36-months-jail-binance-founder-zhao-2024-04-24/

US seeks 3 years prison for Binance founder Zhao

"U.S. prosecutors want Changpeng Zhao, the founder and former chief executive of Binance, the world's largest cryptocurrency exchange, to serve three years in prison after he pleaded guilty to violating laws against money laundering.
Prosecutors made the request in a Tuesday night filing in Seattle federal court.
They said sentencing Zhao to twice the maximum 18 months recommended under federal guidelines would reflect the magnitude of his willful violations, and send a message that "the right choice, every time, is to comply with the law.""

___
If you come to visit us, then spend a little time in prison

[FP91G]

Binance Founder Sentenced to 4 Months in Prison for Money Laundering Charges

Changpeng Zhao, popularly known as CZ, the visionary founder behind Binance, the world’s premier cryptocurrency exchange, found himself in the spotlight as he faced sentencing in a US federal court in Seattle. The verdict, a four-month prison term, marked a significant chapter in the tumultuous journey of one of the most influential figures in the crypto sphere.

Before the court’s ruling, CZ took the opportunity to express remorse for his actions during his tenure as CEO of Binance. In a heartfelt letter to the judge, he acknowledged the gravity of his decisions and vowed to learn from his mistakes, ensuring that such lapses in judgment would not recur.

The legal saga stemmed from a coordinated settlement between Binance and the federal government, wherein the exchange giant agreed to pay a staggering $4 billion in fines and penalties. The charges ranged from anti-money laundering violations to unlicensed money transmission and sanctions breaches. As part of the settlement, CZ, with a personal fortune nearing $40 billion, agreed to step down from his role as CEO and pay fines totaling $200 million.

https://www.msn.com/en-us/money/companies/binance-founder-sentenced-to-4-months-in-prison-for-money-laundering-charges/ar-AA1nY28q

[zasad@]

Here's the story of the events in court
https://twitter.com/nikhileshde/status/1785350502949241039
"Good morning folks. I'm in a Seattle courthouse today with @realDannyNelson  covering @cz_binance's sentencing hearing. The DOJ's asked for 3 years in prison; defense has asked for house arrest and probation. Thread starts here"

___
CZ got away with a very short prison sentence. Although there are many people in the United States who are dissatisfied with this decision, the first act of the play is over.

[safar1980]

CZ twitter:

I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).

I will remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is super important.

A silver lining of this whole process is that Binance has been under the microscope. And funds are SAFU.

Protect users!

[UmerIdrees]

__
CZ got away with a very short prison sentence. Although there are many people in the United States who are dissatisfied with this decision, the first act of the play is over.

There are many opinions that there was no clear evidence against CZ and this trial of 4 months prison for CZ was just done for the face-saving of the SEC. If there were proof against the CZ, the prison duration would have been much worse for him.
This time will pass away and CZ will come back more strongly.

A silver lining of this whole process is that Binance has been under the microscope. And funds are SAFU.

There were many occassions which were much more worse for binance , where people removed their funds from the exchange in big quantities yet the exchange survived and did not held the funds for any users. So this moment isn't much worse than before and therefore the users of Binance are not panicking.

[zasad@]

__
CZ got away with a very short prison sentence. Although there are many people in the United States who are dissatisfied with this decision, the first act of the play is over.

There are many opinions that there was no clear evidence against CZ and this trial of 4 months prison for CZ was just done for the face-saving of the SEC. If there were proof against the CZ, the prison duration would have been much worse for him.
This time will pass away and CZ will come back more strongly.

Man, this is a very funny read!
If CZ is not guilty, then why did he pay 4 billion dollars to the USA?

There was a lot of evidence in this case, but apparently the politicians chose not to make public the huge pile of dirty bed linen and found a certain compromise.
Soon CZ will finish his rest in an American prison and will engage in other activities.

[safar1980]

Binance CEO Teng Says Nigeria Must Release 'Beloved Colleague' Gambaryan  
Binance CEO Richard Teng called on the Nigerian government to release Tigran Gambaryan, head of the crypto exchange's Financial Crime Compliance team, who flew to the country in February for talks on regulatory supervision.

"As you may be aware, one of our beloved colleagues, Tigran Gambaryan, continues to be held by the government in Nigeria for more than 70 days," Teng wrote in a blog post. "I also feel that it's time to speak out about this issue on behalf of the global business community. To invite a company's mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide."
The exchange's Regional Manager for Africa, Nadeem Anjarwalla, was also detained in February, and made headlines in March after escaping custody.

[zasad@]

Binance CEO Teng Says Nigeria Must Release 'Beloved Colleague' Gambaryan  
Binance CEO Richard Teng called on the Nigerian government to release Tigran Gambaryan, head of the crypto exchange's Financial Crime Compliance team, who flew to the country in February for talks on regulatory supervision.

"As you may be aware, one of our beloved colleagues, Tigran Gambaryan, continues to be held by the government in Nigeria for more than 70 days," Teng wrote in a blog post. "I also feel that it's time to speak out about this issue on behalf of the global business community. To invite a company's mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide."
The exchange's Regional Manager for Africa, Nadeem Anjarwalla, was also detained in February, and made headlines in March after escaping custody.

blah.. blah
CZ paid 4 billion and received a prison sentence of 5 months. SBF did not pay and received 25 years in prison.
Binance has earned good profits in Nigeria. The important question is whether they are ready to spend resources on freeing their former employees or whether they will receive long prison sentences.

[zasad@]

https://protos.com/no-changpeng-zhao-isnt-in-prison-yet-heres-why/
No, Changpeng Zhao isn’t in prison yet — here’s why
"Possibilities for sentenced criminals who don’t immediately go to prison
According to federal statute 18 U.S.C. § 3585(a), a criminal’s sentence begins when that person is ‘received in custody awaiting transportation to, or voluntarily surrenders to, the official detention facility at which her sentence is to be served.’ Although that sentence can begin immediately on the day of sentencing, there are three possibilities for delay.

A judge might force a defendant to first surrender to the US Marshalls, who may then escort or later notify the criminal of when to physically go to prison.
A judge might authorize the Probation or Pretrial Services Office to notify the defendant of their prison entry date.
The judge might allow a defendant to voluntarily go to prison. Judges usually reserve this option for defendants with the shortest sentence or the lowest likelihood of fleeing."