CZ may serve prison sentence with “crypto-anarchist” Jim Bell

Author: Turner Wright, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Changpeng Zhao, former CEO of Binance, has asked a federal judge to sentence him to probation after pleading guilty to violating money laundering laws. His legal team has filed several statements to support his proposal, including one that suggests he could serve his sentence at the Federal Detention Center (FDC) in SeaTac, Washington.

Robert Palmquist said in a filing with the U.S. District Court for the Western District of Washington in Seattle on April 23 that if imprisoned, Changpeng Zhao would "most likely" serve his sentence at FDC SeaTac. Palmquist, who served as warden of the Washington prison from 2003 to 2009, described the prison as "poor in natural light" and understaffed considering the number of inmates.

"If Mr. Zhao is incarcerated ... his wealth and status as a public figure will put his physical and mental health at risk for threats, including but not limited to theft and extortion," Palmquist said. "Changpeng Zhao encounters criminals of all security levels and potentially falls prey to high-security predators due to his naive knowledge of prison experience and economic resources."

Source: Courtlistener

FDC Seatac, located just south of Seattle-Tacoma International Airport, holds 794 inmates, according to its website, and has previously housed a Proud Boys member accused of involvement in the January 6, 2021 attack on the U.S. Capitol, and a "crypto-anarchist" named Jim Bell. Bell, who was released in 2012, was charged with tax evasion in the 1990s in connection with “Assassination Politics”: encouraging anonymous payments to individuals to order the assassinations of government officials.

Zhao’s lawyers submitted multiple letters from friends, family, and business leaders supporting a lighter sentence for the former CEO.The judge had the power to sentence CZ to up to 10 years in federal prison under U.S. sentencing guidelines but recommended a sentence of 12 to 18 months for his specific charges. Prosecutors had asked for a three-year prison sentence and a $50 million fine.

CZ will become one of the most high-profile figures in the cryptocurrency space after the conviction and sentencing of former FTX CEO Sam Bankman-Fried, who will head into federal court to learn whether the judge will decide to grant him probation or send him to prison. Alex Mashinsky, the former CEO of Celsius, faces seven counts of securities and commodities fraud and is due to go to trial in January 2025.

Zhao has largely not commented on the charges since he pleaded guilty in November 2023 as part of a $4.3 billion settlement between U.S. authorities and Binance. In a Feb. 2 letter to Judge Richard Jones, Zhao apologized for his “poor decisions” regarding Binance and said he was prepared to take responsibility for his actions.

The former Binance CEO is scheduled to return to court on April 30 for sentencing. Since November, he has been able to travel freely in parts of the United States on a $175 million bail.