Changpeng Zhao (CZ), the former chief executive officer of Binance, faces a recommended three years prison sentence from the US Department of Justice.

The Department of Justice suggests that the proposed sentence for CZ is intended not only to address his actions but also to send a broader message globally to dissuade others from engaging in similar behavior.

This was contended by CZ lawyers who filed that the sentence would be twice as long as what was initially expected for him.

They emphasized that Zhao has shown exceptional acceptance of responsibility and has made effort towards accountability by voluntarily traveling to the United States, pleading guilty, resigning from his position as CEO, and paid fines.

Futhermore, they argued that there isn't a previous legal case where someone in a comparable situation to Zhao was sent to prison. Therefore, they suggest CZ faces probation rather than prison time.

Last year, Binance CEO CZ stepped down after admitting to non-compliance with U.S. Anti-Money Laundering (AML) laws and agreeing to a $4 billion resolution. CZ confessed to ignoring the U.S. AML rules by refusing to establish an AML program, as required for all financial institutions in the U.S. This rule was laid to mitigate and flag down money laundering activities carried out by bad actors and to prevent transactions between U.S. citizens and sanctioned nations such as Iran.

This issue sparked various reactions from both the crypto community and U.S. legislators. CZ was accused of disregarding compliance rules and violating U.S. laws.

"Binance’s crimes gave sanctioned customers unfettered access to American capital and financial services. This prosecution is a warning that companies that do not build sanctions compliance into their services face serious criminal penalties, as do the executives who lead them" said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division (NSD).

In an effort to lessen CZ's prosecution, his family, friends, and employees wrote

letters to the U.S. justice system, portraying him as a person of good character. These letters are typically referred to as character reference letters intent to provide information about the CZ's background, character, and contributions to their community. They serve as evidence that, despite facing criminal charges, CZ possesses positive qualities that may influence the court's judgment.

The letters which were reported to be 350 pages from recognised individuals such as: CZ partner, Former US ambassador to China Max Baucus, Xinjun Liang--Fosun International co-founder, two members of ruling families in the United Arab Emirates, Bitfury leaders, and the founder of venture capital firm Antler.

The letters contents portrayed CZ as a person who displays minimal interest in amassing wealth, favors ordinary attire over designer clothing, prioritizes family bonds, upholds honesty and integrity in business transactions, and actively contributes to charitable causes.

The court's final verdict is scheduled for April 30th.