Founder of Binance Faces Sentencing: Prosecutors Seek Three-Year Prison Term
The founder of the giant cryptocurrency exchange Binance, Changpeng Zhao, is facing a potential three-year prison sentence after pleading guilty to a money laundering violation. Federal prosecutors have recommended this sentence, citing the unprecedented scale of his law-breaking behavior.
Defense lawyers, on the other hand, are arguing for no prison time and instead are pushing for probation for Mr. Zhao. They highlight his acceptance of responsibility for his crime and his commitment to philanthropy as reasons for leniency.
The sentencing hearing for Mr. Zhao is set to take place on Tuesday before federal judge Richard A. Jones in Seattle. This case marks another significant moment in a series of criminal prosecutions targeting powerful figures in the global cryptocurrency industry.
Just 18 months ago, Mr. Zhao was at the helm of Binance, helping trigger events that led to the collapse of FTX, Binance’s largest rival, and the imprisonment of FTX founder Sam Bankman-Fried. Now, Mr. Zhao finds himself in a similar situation, facing his own legal consequences.
Prosecutors are seeking a three-year sentence for Mr. Zhao, emphasizing the scope and ramifications of his actions. They point out that Binance agreed to pay $4.3 billion in fines and restitution to the U.S. government for violating economic sanctions and allowing criminal activity on its platform.
In court papers, Mr. Zhao admitted to prioritizing Binance’s growth over compliance with regulations, putting U.S. customers and national security at risk. His lawyers argue for leniency, highlighting his remorse and efforts to remediate the situation.
Despite the contrasting recommendations from prosecutors and defense lawyers, the ultimate decision lies with Judge Jones. The outcome of Mr. Zhao’s sentencing will have far-reaching implications for the cryptocurrency industry and its key players.
