US District Judge Richard Jones to Sentence Binance Founder Zhao on April 30
US District Judge Richard Jones is expected to sentence Zhao on April 30 for violating laws against money laundering. Prosecutors are seeking a three-year prison sentence for Changpeng Zhao, the founder and former chief executive of Binance, the world’s largest cryptocurrency exchange. Zhao pleaded guilty to evading anti-money laundering requirements under the Bank Secrecy Act.
Prosecutors argue that a three-year prison sentence would reflect the magnitude of Zhao’s violations and send a message that compliance with the law is essential. Zhao’s lawyers, on the other hand, have requested probation for their client.
Zhao, once a powerful figure in the crypto industry, stepped down as Binance’s chief last November when he and the exchange admitted to their wrongdoing. Binance agreed to a $4.32 billion criminal penalty for failing to report suspicious transactions with designated terrorist groups and supporting illegal activities such as the sale of child sexual abuse materials.
Despite his acceptance of responsibility and payment of a $50 million criminal fine, prosecutors believe Zhao made a conscious decision to violate US law for personal gain. His lawyers argue that Zhao has since made efforts to improve compliance at Binance and should be given leniency as a first-time offender.
Zhao has been free on a $175 million bond and has agreed not to appeal any sentence within federal guidelines. Binance’s penalty included a $1.81 billion criminal fine and $2.51 billion of restitution, with Zhao also paying $50 million to the US Commodity Futures Trading Commission.
The case is ongoing in the US District Court, Western District of Washington, under the title US v. Zhao. Stay tuned for updates on Zhao’s sentencing on April 30.
