Coinspeaker
Changpeng Zhao Yet to Serve Prison Time Despite 4-Month Sentence
Crypto exchange Binance’s co-founder and former chief executive Changpeng Zhao, also known as CZ in the crypto industry, has yet to see the inside of a prison cell despite his four-month sentencing announced on April 30. As per a report from Protos, a combination of factors, including the formalities in the justice system, the Fifth Amendment, and the efforts of world-class lawyers, resulted in Zhao not being inside the walls of the prison.
United States District Judge Richard A. Jones sentenced CZ at Seatac, an administrative security federal detention center and prison in Western Washington with a total of 931 inmates. The judgment signed by Judge Jones stated that Zhao “shall surrender for service of sentence as notified by the Probation or Pretrial Services Office.”
CZ pleaded guilty in 2023 to money laundering violations, and Binance paid a hefty $4.3 billion fine to settle with the Department of Justice (DoJ).
Interestingly, as of now, these offices have not yet notified the ex-Binance head and crypto billionaire of the date he must report to the California prison.
Reasons for Changpeng Zhao Not Being in Prison Now
As per US laws, a criminal’s sentence begins once they are either received in custody awaiting transportation to, or voluntarily surrender to, the official detention facility. However, a delay can occur in three cases:
- The judge may order the defendant to surrender to the US Marshals, who will be responsible for notifying the criminal of his prison date.
- The judge may authorize the Probation or Pretrial Services Office to notify the defendant of their prison entry date.
- The judge might allow the defendant to voluntarily report to prison—a case applicable to criminals with short sentences or who possess low flight risk.
Zhao was granted the second option. As he was not sentenced to a multi-year term, US Marshals did not immediately take him into custody. Instead, he awaits notification from the Probation or Pretrial Services Office.
Additionally, the Probation or Pretrial Services Office has to complete an analysis of the criminal before notifying them of the prison date. The analysis includes checking the resources of the facility, the nature and circumstances of the offense, and the offender’s history and characteristics, among other things.
As a result, Zhao is still not inside prison walls because the Probation or Pretrial Services Office hasn’t completed its analysis. The Fifth Amendment guarantees due process for every criminal who may or may not reside in the United States.
Moreover, Protos also reported that Zhao’s defense team, comprising seven lawyers and additional support staff from three prestigious law firms, Latham & Watkins, Quinn Emanuel Urquhart & Sullivan, and Davis Wright Tremaine, played a significant role in delaying the commencement of his prison term.
If due process is not followed by the Probation or Pretrial Services Office, Zhao’s legal team can contend for a reduction in the sentencing duration on due process grounds.
Changpeng Zhao Yet to Serve Prison Time Despite 4-Month Sentence
