U.S. Department of Justice Recommends 3-Year Prison Sentence for Former Binance CEO Changpeng Zhao
The U.S. Department of Justice (DOJ) has recommended a three-year prison sentence for Changpeng “CZ” Zhao, the founder and former CEO of Binance, due to his role in enabling the cryptocurrency exchange to violate federal sanctions and money laundering laws.
In a sentencing memo filed on Tuesday night, DOJ attorneys argued for a 36-month prison term and a $50 million fine following Zhao’s guilty plea to violating the Bank Secrecy Act in November 2022.
The prosecution cited the use of Binance by illicit actors for mixing services, ransomware transactions, and moving proceeds from darknet markets and exchange hacks. The DOJ argued that Zhao reaped vast rewards for his violation of U.S. law and that the sentence should reflect the gravity of his misconduct.
Zhao’s sentencing hearing, originally scheduled for late February, was postponed to April 30 by mutual agreement. Alongside Zhao’s personal plea, Binance, the world’s largest crypto exchange, also pleaded guilty to charges of its own and agreed to a $4.3 billion fine.
The DOJ’s recommendation for a three-year prison sentence and a $50 million fine for Zhao highlights the increasing scrutiny and enforcement actions in the cryptocurrency industry. Stay tuned for updates on this developing story.
