Former Binance CEO Changpeng Zhao Faces 36-Month Prison Sentence: DOJ
Former Binance CEO Faces 36-Month Prison Sentence in US
In a shocking turn of events, the US Department of Justice has recommended a 36-month prison sentence for Changpeng Zhao, the former chief executive officer of Binance, the world’s largest crypto exchange. The DOJ stated that the sentence “will not just send a message to Zhao but also to the world,” emphasizing the need for significant consequences for violating US law.
Late last year, Binance pleaded guilty to US anti-money-laundering and sanctions violations, resulting in $4.3 billion in penalties and oversight from authorities. Zhao also pleaded guilty to failing to maintain an effective anti-money laundering program and stepped down as CEO.
A three-year sentence for Zhao, who co-founded Binance, would be double what he was previously expected to serve. Despite this, Zhao’s lawyers argued for probation instead of prison time, citing a lack of precedent for incarceration in similar cases.
More than 160 of Zhao’s friends, colleagues, and investors submitted letters to the court in an effort to sway the judge towards leniency. In his own letter, Zhao expressed remorse for his actions and the loss of his life’s work when he stepped down from the company.
Zhao’s case is the second major sentencing this year for a crypto executive in US courts, following the 25-year prison sentence for former FTX boss Sam Bankman-Fried. Binance has pledged to make structural and transparency changes in the wake of its US case, including establishing a global headquarters and receiving full registration of its services in Dubai.
As the crypto industry continues to face scrutiny and regulation, the sentencing of top executives like Zhao and Bankman-Fried serves as a stark reminder of the consequences of violating the law in the digital asset space.
