DOJ Recommends 36-Month Prison Sentence for Binance Founder Changpeng Zhao
The founder of Binance, Changpeng Zhao, is facing a recommended 36-month prison sentence and a $50 million fine after pleading guilty to violating money-laundering laws. The Department of Justice is pushing for a harsh sentence, stating that Zhao’s actions were willful violations of U.S. law that had serious consequences.
Prosecutors allege that Binance processed transactions involving unlawful activity and failed to report suspicious transactions with designated terrorist groups. Zhao’s guilty plea followed a lengthy DOJ investigation into the crypto exchange’s operations, which have also led to lawsuits from the SEC and CFTC.
In a letter to the court, Zhao apologized for his “poor decisions” and accepted full responsibility for his actions. However, prosecutors argue that his violations were not accidental and were made to attract users, build his company, and line his pockets.
Mr. Zhao is expected to be sentenced on April 30th, with the DOJ pushing for a sentence twice the maximum recommended under federal guidelines. Stay tuned for updates on this developing story.
