2024-04-25
According to an expert in U.S. federal prisons, there is a possibility that the former CEO of Binance, if convicted and sentenced to jail, could be at risk of "theft and extortion" from other inmates.
Changpeng "CZ" Zhao, the former CEO of Binance, has requested that a federal judge sentence him to probation after admitting guilt in violating money laundering laws.
His legal team has filed various statements in support of this request, including one proposing that he serve his sentence at the Federal Detention Center (FDC) SeaTac in Washington.
In a filing on April 23 in the U.S. District Court for the Western District of Washington at Seattle, Robert Palmquist stated that it is highly likely that Zhao would serve his sentence at FDC SeaTac if given prison time.
Palmquist, who was the warden of the Washington facility from 2003 to 2009, described it as having minimal natural light and being understaffed considering the number of inmates.
Palmquist expressed concerns about Zhao's well-being if he were to be incarcerated, stating that his wealth and public figure status could expose him to threats such as theft and extortion.
He mentioned that Zhao's lack of prison experience and financial resources could make him vulnerable to offenders of all security levels, particularly those with high-security designations.
FDC SeaTac, located south of the Seattle-Tacoma International Airport, currently houses 794 inmates according to its website.
It has previously housed individuals involved in high-profile cases, such as a Proud Boys member charged in connection with the January 6, 2021, attack on the U.S. Capitol and Jim Bell, a 'crypto-anarchist' who was charged with tax evasion in the 90s.
Zhao's legal team submitted several letters from friends, family members, and business leaders advocating for a lenient sentence.
While the judge has the authority to sentence Zhao to up to 10 years in federal prison under U.S. sentencing guidelines, 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.
Following the conviction and sentencing of former FTX CEO Sam Bankman-Fried, Zhao will be one of the most prominent figures in the crypto industry to face a federal courtroom and await the judge's decision on probation or imprisonment.
Former Celsius CEO Alex Mashinsky, who is facing seven securities and commodities fraud charges, will 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, Zhao has largely refrained from publicly commenting on the charges.
In a letter to Judge Richard Jones dated February 2, Zhao expressed regret 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. under a $175 million bond.
