US prosecutors seek three-year prison term for Binance founder over money laundering violations
The founder and former chief executive of Binance, Zhao Changpeng, is facing a potential three-year prison sentence after pleading guilty to violating laws against money laundering. US prosecutors are pushing for this harsh penalty, citing the magnitude of Zhao’s violations and the need to send a message about the importance of compliance with the law.
In a recent filing in Seattle federal court, prosecutors argued that Zhao should receive a sentence double the maximum 18 months recommended under federal guidelines. They highlighted Binance’s agreement to a massive US$4.32 billion criminal penalty, which included a US$1.81 billion fine and US$2.51 billion in restitution.
According to prosecutors, Binance operated under a “Wild West” model that welcomed criminals and failed to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al-Qaeda, and ISIS. They also accused Zhao’s platform of supporting the sale of child sexual abuse materials and receiving a significant portion of ransomware proceeds.
Despite these serious allegations, Zhao’s lawyers have requested probation for their client. They emphasized Zhao’s acceptance of responsibility, his payment of a US$50 million criminal fine, and his efforts to improve compliance at Binance since the initial failures that led to the prosecution.
Zhao, who founded Binance in 2017, has been free on a US$175 million bond but has agreed not to appeal any sentence within federal guidelines. The case, known as US v. Zhao, is being overseen by US District Judge Richard Jones, with a sentencing hearing scheduled for April 30.
The potential imprisonment of Zhao Changpeng, a prominent figure in the cryptocurrency world, has sparked interest and concern among industry observers. Stay tuned for updates on this developing story.
