U.S. prosecutors have recommended a 36-month prison sentence for Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. This comes after Zhao pleaded guilty to violating money laundering laws. The sentencing, scheduled for April 30 in Seattle, follows Zhao stepping down as Binance’s chief last November, with the exchange admitting to violations and agreeing to a penalty of $4.32 billion.
Despite federal sentencing guidelines setting a maximum of 18 months in prison for Zhao, prosecutors argue that his willful violation of U.S. law warrants an above-guidelines sentence. Zhao had agreed not to appeal any stretch up to 18 months but has been free in the United States on a $175-million bond. The violations include failure to report suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.
Furthermore, prosecutors allege that Binance’s platform facilitated the sale of child sexual abuse materials and received a significant portion of ransomware proceeds. As part of the agreement, Zhao, commonly known as CZ, agreed to pay $50 million and cease involvement with Binance, which he founded in 2017.
Source: Reuters