Changpeng “CZ” Zhao, founder and former CEO of Binance, the world’s largest crypto exchange, faces a potential three-year prison sentence.
This development follows his guilty plea to charges that he helped the company violate anti-money laundering laws and sanctions
Binance Co-Founder Changpeng Zhao’s Trial Starts on April 30
According to Reuters, Federal prosecutors have argued for a 36-month incarceration for Zhao, underlining the gravity of his offenses under the Bank Secrecy Act. In addition, the sentencing memo filed on Tuesday recommends a substantial $50 million fine.
Prosecutors in the case have pointed out the broad impact of Zhao’s actions on the financial system’s integrity, calling for a stricter sentence. They intend to punish Zhao and deter similar future conduct by others in the industry.
“Given the magnitude of Zhao’s willful violation of US law and its consequences, an above-guidelines sentence of 36 months is warranted,” US prosecutors said.
This stance represents a notable shift from the earlier plea agreement, which suggested a maximum of 18 months.
The legal proceedings involving Zhao have experienced delays. His sentencing has been pushed back to April 30. Since his initial court appearance in Seattle last year, Zhao has not been able to return to Dubai, where he lives with his partner and children.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Meanwhile, Binance itself has also pleaded guilty to related charges. The company agreed to pay $4.3 billion in fines and to report to a court-appointed monitor, though this official has yet to be appointed.
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