Binance Founder CZ Faces 36 Months in Prison for Money Laundering
Changpeng Zhao, Binance Founder, Faces 36 Months in Prison for Money Laundering
In a shocking turn of events, Changpeng Zhao, the founder and ex-CEO of Binance, the world’s leading cryptocurrency exchange, is expected to be sentenced in the United States for money laundering. Zhao, also known as CZ, pleaded guilty to the charges in November 2023, and now the U.S. Attorney’s Office is seeking a 36-month prison sentence and a $50 million fine.
CZ, who founded Binance in 2017 and also runs the technology company FusionSystems, resigned as CEO in light of the charges. Initially, he was fined $50 million, along with fines imposed on Binance. However, US authorities are pushing for a prison sentence for CZ, despite the hefty fine.
The sentencing is scheduled for April 30, 2024, and the charge against Zhao is “willful violation of U.S. money laundering laws.” This development comes as a surprise to many, as it was initially believed that Zhao would only face 18 months in prison based on federal sentencing guidelines.
Currently, CZ is out on bail of $175 million and has not appealed the decision. He had previously offered to pay the US government $4.3 billion in fines to settle the criminal case and allow Binance to continue its operations within the provisions of US law.
In addition to the legal troubles in the US, Binance is also facing a class action lawsuit in Canada for allegedly violating securities laws by selling crypto derivatives to retail investors without proper registration. Despite withdrawing from Canada in 2023, authorities there are continuing to investigate the company.
The cryptocurrency community is closely watching the developments surrounding CZ and Binance, as the outcome of this case could have far-reaching implications for the industry. Stay tuned for more updates on this developing story.
