The sentencing hearing for Binance founder CZ(CZ) is about to be held on 4/30 EST. Everyone in the market is paying attention to how long he will be sentenced.
- The U.S. Department of Justice requested in a sentencing memorandum released last week that CZ should be sentenced to 3 years in prison.
- However, the U.S. Probation Office recommended that a five-month suspended sentence be imposed.
- 44% of gamblers on the decentralized gaming platform Polymarket are optimistic that CZ will be sentenced to less than 6 months in prison.
According to Bloomberg , if CZ is really sentenced by the federal court in Seattle, CZ will become the richest prisoner in the history of US federal prisons. This is because CZ’s ownership of Binance and his personal net worth of approximately US$43 billion have not been Affected by the case, his wealth may further increase as Binance's business grows in a new bull market.
CZ’s influence remains undiminished
Binance reached a settlement agreement with the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC) and other agencies in November last year, pleading guilty and agreeing to pay a $4.3 billion fine. CZ admitted to violating U.S. anti-money laundering laws and other charges, and resigned as CEO of Binance. job.
According to the report, although CZ gave up his position as CEO in order to reach a settlement with the US government, his influence on Binance is still significant. The company’s new board members are mainly composed of his loyal friends. He is the He Yi of CZ three children. One, it also plays an important role in Binance operations.
Extended reading: He Yi’s growth story: Psychology major, former teacher, host... Now Binance cannot do without her
Although Binance has faced a series of severe accusations from the US authorities and its dominance has declined, Binance still maintains its leading position in the cryptocurrency spot and derivatives markets. Binance added more than 40 million users last year, a 30% increase from the previous year. , exchange customer currency holdings have soared to more than 100 billion US dollars.
According to Bloomberg estimates, Binance may have achieved annual revenue of $9.8 billion in the 12 months to March this year.
Binance and FTX have different main reasons for success and survival
Other reports believe that Binance has been able to persist largely because the situations of Binance and CZ are very different from FTX and its founder SBF. After conviction, SBF was sentenced to 25 years in prison, and his current net worth is estimated to be $0, but the crimes charged by the U.S. Department of Justice against Binance did not include defrauding customers of their use of funds.
In addition to the completely different business styles of CZ and SBF, more importantly, Binance can properly handle the violent fluctuations in the market. Austin Campbell, a professor at Columbia Business School and a consultant to blockchain companies, said:
Binance is the largest exchange and has performed well during thunderstorms such as FTX, Three Arrows Capital, and Terraform Labs. The actions of the US government are regarded as a huge threat. Since Binance can survive, people have more confidence in Binance.
