U.S. prosecutors are seeking 36 months of imprisonment for Changpeng Zhao, the founder of Binance, citing the “magnitude of Zhao’s willful violation of U.S. law and its consequences.”
Binance founder and former CEO Changpeng Zhao might be facing 36 months in prison after pleading guilty to violating laws against money laundering, as U.S. prosecutors said in a recent court filing that such a sentence would provide “adequate deterrence to Zhao and to others who may also be tempted to put profits above compliance with U.S. laws.”
“Zhao committed serious crimes in a deliberate scheme to grow Binance as quickly as possible and then to maintain its dominance as the largest cryptocurrency exchange. His crimes warrant meaningful prison time.”
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Prosecutors also assert that Zhao’s actions were part of a calculated effort to rapidly expand Binance’s operations and maintain its position as the leading cryptocurrency exchange. According to U.S. authorities, Binance’s former head chose not to implement and maintain an effective know-your-customer (KYC) system, which “prevented effective transaction monitoring and allowed suspicious and criminal users to transact through Binance.”
Zhao had previously entered a guilty plea to charges of violating the Bank Secrecy Act in November 2023. Although he is currently out on a $175 million release bond in the U.S., his sentencing hearing is still scheduled for Apr. 30. A U.S. judge earlier denied Zhao’s request to travel to Dubai, citing concerns about his considerable wealth posing a significant flight risk.
Source: https://crypto.news/us-seeks-36-month-jail-sentence-for-binance-founder/