US prosecutors recommended a 36-month prison sentence for Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange. Zhao was found guilty of violating anti-money laundering laws, according to a court filing today.
US Prosecutors Seek 36 Months Prison Sentence for Binance Founder Changpeng Zhao
Zhao, also known as CZ, is expected to be sentenced on April 30 in Seattle. He resigned as chairman of Binance last November when he and the exchange admitted to violations. The firm accepted a hefty penalty of $4.32 billion.
“Given the magnitude and consequences of Zhao's willful violation of US law, a sentence above the 36-month guidelines is warranted,” US prosecutors said in their application to the US district court for the western district of Washington.
Federal sentencing guidelines called for a maximum sentence of 18 months in prison for Zhao, and Zhao agreed not to appeal sentences up to that period. He was released in the United States on a bail of $175 million.
US officials accused Binance of failing to report more than 100,000 suspicious transactions with designated terrorist groups, including Hamas, Al Qaeda and the Islamic State of Iraq and the Levant (ISIS).
Prosecutors also alleged that Binance's platform supported the sale of child sexual abuse material and was the recipient of a large share of ransomware revenues.
*This is not investment advice.
