Daily Management Review

US Wants Binance Founder Zhao To Spend 36 Months In Prison


US Wants Binance Founder Zhao To Spend 36 Months In Prison
U.S. prosecutors stated in a court document on Tuesday that Changpeng Zhao, the creator of Binance, the biggest cryptocurrency exchange in the world, should spend 36 months in jail after entering a guilty plea to breaking laws prohibiting money laundering.
Zhao resigned as CEO of Binance last November after the exchange and he both acknowledged the wrongdoing and the company agreed to a $4.32 billion fine. Zhao is scheduled to be sentenced in Seattle on April 30.
U.S. prosecutors urged the U.S. district court for the western district of Washington, "an above-guidelines sentence of 36 months is warranted given the magnitude of Zhao's willful violation of U.S. law and its consequences."
Zhao had consented not to file an appeal against any punishment that might have been up to the maximum of 18 months in jail under federal sentencing guidelines. He has been released from custody in the US thanks to a $175 million bond.
Authorities in the United States claim that Binance neglected to disclose over 100,000 questionable transactions with terrorist organisations that have been designated, such as Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS.
Prosecutors claimed that a significant amount of ransomware revenues were received by Binance's platform, which also encouraged the sale of items depicting child sexual assault.
Zhao, also referred to as CZ, promised to pay $50 million and give up his role at Binance, which he started in 2017.
A criminal fine of $1.81 billion and $2.51 billion in restitution were part of Binance's sentence.