US seeks 36-month prison sentence for former Binance CEO

According to U.S. prosecutors, Changpeng Zhao, the founder and former CEO of Binance, the largest cryptocurrency exchange worldwide, has been sentenced to 36 months for violating anti-money laundering regulations

The legal saga between the U.S. Department of Justice and Binance, led by its founder Changpeng Zhao, continues. The lawsuit, filed last year, resulted in a staggering initial fine of over $4.3 billion, with Zhao now facing a potential 36-month prison sentence.

The accusations against Binance and Zhao are serious. They stand accused of not adequately implementing federal sanctions and anti-money laundering regulations, a violation that carries significant legal and financial consequences.

“Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-guideline sentence of 36 months is warranted,” U.S. prosecutors told the district court for the western district of Washington.

Zhao’s maximum sentence, as stated by his agreement with the Department of Justice, was 18 months. Nevertheless, the department’s legal representatives argued that the magnitude and impact of Zhao’s “misconduct” were significant enough to warrant a substantial penalty.

The lawyers restated the $50 million penalty; however, Zhao had already consented to make this payment. The case, originally scheduled to commence in February, was rescheduled to April 30 per the parties’ mutual agreement.

 

Source: Newsroom