The U.S. prosecutors are seeking a three-year prison sentence for Changpeng Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange.
This comes after Zhao pleaded guilty to violating laws against money laundering. Prosecutors argue that a longer sentence than the recommended 18 months would reflect the seriousness of his violations and send a message about the importance of complying with the law.
Zhao, once a prominent figure in the crypto industry, stepped down as Binance’s chief last November, following admissions of evading anti-money laundering requirements.
Binance agreed to a hefty $4.32 billion criminal penalty. Prosecutors highlighted Binance’s lax approach to compliance, alleging failure to report suspicious transactions involving terrorist groups and facilitating the sale of illegal materials.
Zhao’s lawyers are requesting probation, citing his acknowledgment of responsibility, payment of a $50 million criminal fine, and efforts to improve compliance at Binance.
They argue that no similar case has resulted in imprisonment and emphasize Zhao’s role in making Binance a compliance leader.
The case is scheduled for sentencing on April 30th, with Zhao currently free on a $175 million bond. Binance’s penalty includes a $1.81 billion criminal fine and $2.51 billion in restitution, along with Zhao’s separate payment of $50 million to the U.S. Commodity Futures Trading Commission.
