Former Binance CEO Changpeng “CZ” Zhao has made a plea to a federal judge, requesting probation as his sentence after admitting guilt in violating money laundering laws. His legal team has submitted multiple statements in support of this recommendation, including one proposing that he serve his sentence at the Federal Detention Center (FDC) SeaTac, Washington.
In a filing on April 23 at the U.S. District Court for the Western District of Washington in Seattle, Robert Palmquist stated that it was highly likely that if Zhao were to be imprisoned, he would serve his sentence at FDC SeaTac. Palmquist, who was the warden of the Washington facility from 2003 to 2009, described it as a place with limited natural light and understaffed considering the number of inmates.
Palmquist expressed concerns about Zhao’s safety if incarcerated, stating, “If Mr. Zhao is incarcerated […], his wealth and status as a public figure would expose him to a risk of threats to his physical and mental health, including but not limited to theft and extortion. Mr. Zhao would encounter offenders of all security levels and potentially be prey to predators with high-security designations due to his naivety concerning prison experiences and his financial resources.”
FDC SeaTac, located south of Seattle-Tacoma International Airport, houses 794 inmates according to its website. In the past, it has accommodated a Proud Boys member charged in connection with the January 6, 2021, attack on the U.S. Capitol, as well as Jim Bell, a ‘crypto-anarchist.’ Bell, who was released in 2012, was charged with tax evasion in the 90s for promoting anonymous payments for individuals to order the killing of government officials through ‘Assassination Politics.’
Zhao’s legal team submitted several letters from friends, family members, and business leaders advocating for a lenient sentence for the former CEO. While the judge has the authority to sentence CZ to federal prison for up to 10 years, there is a recommended sentence of 12 to 18 months for his specific charge. Prosecutors have requested a three-year prison term and a $50 million fine.
After the conviction and sentencing of former FTX CEO Sam Bankman-Fried, CZ will become one of the most prominent figures in the crypto industry to appear in a federal courtroom and await the judge’s decision on whether probation or imprisonment will be granted. Former Celsius CEO Alex Mashinsky, who is facing seven securities and commodities fraud charges, is set to go to trial in January 2025.
Since his guilty plea as part of a $4.3 billion settlement between U.S. authorities and Binance in November 2023, CZ has mostly refrained from publicly commenting on the charges. In a letter to Judge Richard Jones dated February 2, Zhao apologized for his “poor decisions” regarding Binance and expressed his readiness to take responsibility for his actions.
The former Binance CEO is scheduled to appear in court for sentencing on April 30. Since November, he has been allowed to travel within certain parts of the U.S. on a $175 million bond.