US Wants To Sentence Binance Founder Zhao To 36 Months In Prison.
After pleading guilty to breaking laws prohibiting money laundering, Changpeng Zhao, the founder and former CEO of Binance, the largest cryptocurrency exchange in the world, is wanted by US authorities to spend three years in jail.
In a court filing in Seattle federal court on Tuesday, April 23, prosecutors made the motion.
According to them, sending Zhao to prison for twice as long as the maximum 18 months suggested by federal guidelines would fairly punish him for his egregious offences and convey the message that "the right choice, every time, is to comply with the law."
Zhao's solicitors asked for probation. Zhao is scheduled to be sentenced by U.S. District Judge Richard Jones on April 30.
After the exchange and Zhao, 47, acknowledged avoiding the Bank Secrecy Act's anti-money laundering regulations, Zhao resigned as CEO of Binance in November of last year. A $4.32 billion criminal fine was accepted by Binance.
Using a "Wild West" business model that invited criminals, prosecutors claimed that Binance failed to notify over 100,000 suspicious transactions with recognised terrorist organisations, such as Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS.
They said Zhao's site received a substantial share of ransomware profits and encouraged the selling of goods that glorified child sexual assault.
Using a "Wild West" business model that invited criminals, prosecutors claimed that Binance failed to notify over 100,000 suspicious transactions with recognised terrorist organisations, such as Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS.
They said Zhao's site received a substantial share of ransomware profits and encouraged the selling of goods that glorified child sexual assault.
The prosecutor stated: "He made a business decision that violating U.S. law was the best way to attract users, build his company, and line his pockets."
Zhao's attorneys asked for pardon, pointing to the first-time offender's "unflinching" admission of guilt, his $50 million criminal penalties, and the fact that no prison sentence had been imposed in a case even remotely similar to Zhao's.
According to them, Zhao turned Binance into a compliance leader in the sector "despite the initial failures that led to this prosecution."
On a $175 million bond, Zhao, who created Binance in 2017, has been free and has promised not to appeal any sentences that fall under federal guidelines.
A criminal fine of $1.81 billion and $2.51 billion in restitution were part of Binance's sentence. According to Zhao's attorneys, he also paid $50 million to the U.S. Commodity Futures Trading Commission.
U.S. v. Zhao, U.S. District Court, Western District of Washington, Case No. 23-cr-00179, is the matter at hand.
In the meantime, the Bitcoin exchange is being prosecuted in Nigeria.
According to them, Zhao turned Binance into a compliance leader in the sector "despite the initial failures that led to this prosecution."
On a $175 million bond, Zhao, who created Binance in 2017, has been free and has promised not to appeal any sentences that fall under federal guidelines.
A criminal fine of $1.81 billion and $2.51 billion in restitution were part of Binance's sentence. According to Zhao's attorneys, he also paid $50 million to the U.S. Commodity Futures Trading Commission.
U.S. v. Zhao, U.S. District Court, Western District of Washington, Case No. 23-cr-00179, is the matter at hand.
In the meantime, the Bitcoin exchange is being prosecuted in Nigeria.
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