US prosecutors seek 3-year prison term for Binance founder Zhao Changpeng for money laundering violations
The founder and former chief executive of Binance, Zhao Changpeng, is facing a possible three-year prison sentence after pleading guilty to violating laws against money laundering. US prosecutors are pushing for this harsh penalty, arguing that it would reflect the seriousness of his actions and send a strong message about the importance of compliance with the law.
In a filing in Seattle federal court, prosecutors highlighted the magnitude of Zhao’s wilful violations and emphasized that he made a conscious decision to flout US laws in order to attract users, build his company, and profit personally. They also accused Binance, the world’s largest cryptocurrency exchange, of employing a “Wild West” model that welcomed criminals and failed to report suspicious transactions with designated terrorist groups.
Despite these serious allegations, Zhao’s lawyers are requesting probation for their client, citing his acceptance of responsibility, the substantial criminal fine he has already paid, and his efforts to improve compliance at Binance. They argue that Zhao should not be imprisoned, as no defendant in a similar case has faced such a penalty before.
The sentencing of Zhao Changpeng is scheduled for April 30, and US District Judge Richard Jones will make the final decision. In the meantime, Binance has agreed to a massive US$4.32 billion criminal penalty, including a criminal fine and restitution. The case has drawn attention to the challenges and risks associated with the rapidly growing cryptocurrency industry.
