Changpeng Zhao turns 4 months, Sam Bankman-Fried turns 25 – why?
Two figures who were once considered titans in the crypto industry are serving separate prison terms in the United States.
Since the sentencing hearings for former FTX CEO Sam “SBF” Bankman-Fried and former Binance CEO Changpeng “CZ” Zhao, many in and outside the crypto space have questioned why the two industry leaders received different treatment in the US legal system. . . Bankman-Fried will likely be in his fifties by the time he gets out of prison and will probably have less assets than Zhao, who will be out of prison at the end of the year and has an estimated fortune of $33 billion, according to Forbes.
But let's back up a minute.
Bankman-Fried Arrested in 2022, extradited to the United States, pleaded not guilty, placed under house arrest, sentenced to prison for witness intimidation, six-week trial, convicted and sentenced to 25 years in prison. Zhao was indicted in 2023, pleaded guilty, was granted bail, sentenced to four months in prison and surrendered in a few days.
The former FTX CEO faces seven felony charges related to defrauding investors and misappropriating customer funds. CZ faces one charge related to Binance's failure to maintain an effective anti-money laundering program.
“CZ was charged with the same crime of regulatory violations: lack of adequate anti-money laundering controls, while SBF was charged with wire fraud in connection with the secret theft of billions of dollars in crypto prisons. Mark Binney, a former assistant U.S. attorney for the Eastern District of New York, told Cointelegraph. “When they are both [crimes] They are serious, SBF's crime was worst.
From the beginning of his legal troubles, Banman-Fried and his defense team have largely “justified what he did. [he] “The idea was right.” At his sentencing, Judge Lewis Kaplan accused the former FTX CEO of sleeping on the stand and described the testimony as “delusional.” The judge gave his first interview since handing down the 25-year sentence, saying, “I never thought what I was doing was illegal.” Includes SBF.
The case at trial also undermined SBF's defense. Several government witnesses, including his ex-girlfriend and Alameda Research CEO Caroline Ellison, have suggested he orchestrated the misuse of FTX's beneficiary funds.
In contrast, Zhao has not publicly commented on the issue between US authorities and Binance over the $4.3 billion settlement and the November 2023 guilty plea. He filed hundreds of pages worth of letters from industry leaders, family members and others. Commenting on the outpouring of support for CZ at the hearing, Judge Richard Jones said: “They are at risk. [his] Full net worth” for Binance
“Even though I believe he's guilty of more, the DOJ didn't have the evidence and that's why they can only get CZ to plead guilty,” Swan Bitcoin Managing Director Terence Young told Cointelegraph. “Unlike SBF […], CZ didn't fight extradition (he was in a country he wasn't in) and agreed to only commit minor crimes in the plea deal. CZ is only paying $50M in a plea deal with the DOJ.
Related: Changpeng Zhao's 4-month jail term is a ‘total setback', says lawyer
Despite the speculation of many crypto users, it is doubtful that CZ and SBF will ever share a cell while incarcerated, let alone in the same facility. Although the judge in the SBF case has indicated he will serve time in a San Francisco Bay Area jail, the former FTX CEO may be allowed to remain in New York while he appeals. Zhao will serve four months at the federal detention center in Washington, DC, with a reporting date to be determined.
Magazine: ‘A Little Shiny' Mashinsky Serves Less Jail Time Than SBF: Inner City Press, X Hall of Flame
