Prosecutors have proposed a 36-month prison sentence for Changpeng Zhao (CZ), co-founder and former CEO of Binance.
This proposed sentence was outlined in documents submitted by prosecutors to the federal court in Seattle on April 23rd. “The proposal for a sentence double the 18-month recommendation by the federal government reflects Zhao’s deliberate violation, while also conveying the message that adherence to the law is the most appropriate choice in all circumstances,” the documents stated.
Once the most powerful figure in the cryptocurrency space, CZ resigned as CEO of Binance - the world’s largest cryptocurrency exchange by trading volume - last November. He and the exchange admitted to evading anti-money laundering requirements under the Bank Secrecy Act (BSA) and agreed to a $4.32 billion criminal penalty.
Prosecutors assessed Binance as operating a platform akin to a “wild west” to “welcome criminals.” The company failed to report over 100,000 suspicious transactions, believed to be linked to terrorist groups, as well as receiving digital assets from unlawful activities like ransomware attacks or the sale of child exploitation content.
“He made business decisions in a way: violating U.S. law is the best way to attract users, build a company, and make money,” prosecutors said.
Meanwhile, CZ’s representatives declined to comment. Previously, his lawyers had actively sought to reduce the sentence, arguing factors such as first-time offense and the payment of a $50 million criminal fine. CZ is currently on bail with a $175 million bond and has agreed not to appeal any verdict. Separately, Binance was fined $1.81 billion and ordered to compensate victims with $2.51 billion.
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