Topline

Binance founder and former CEO Changpeng Zhao is facing sentencing in a federal court in Seattle on Tuesday after pleading guilty last year to violating federal money laundering laws and sanctions. Zhao agreed to step down as Binance’s CEO and pay a $50 million fine for failing to maintain an effective anti-money laundering program and sanctions violations related to users in Iran, Cuba, Syria, and Russian-occupied areas of Ukraine.

Justice Department lawyers recommended a three-year prison sentence for Zhao, arguing that it would hold him accountable for his intentional criminal conduct. Zhao’s lawyers, on the other hand, have requested five months’ probation, highlighting his acceptance of responsibility and charity work.

The total amount in fines and forfeiture Binance has agreed to pay is $4.3 billion. Zhao’s net worth is estimated at $33 billion, making him the 50th richest person in the world.

This case is part of a larger crackdown on cryptocurrency-related crimes, with former crypto billionaire Sam Bankman-Fried recently sentenced to 25 years in prison in an $11 billion fraud case. Before its collapse, FTX was the second-largest crypto exchange behind Binance.

The sentencing of Zhao will be closely watched by the crypto community and investors as it could set a precedent for future cases involving high-profile figures in the industry.