The USA proposes a three-year sentence for the founder of Binance
The US Department of Justice is proposing a three-year prison sentence for the founder and former CEO of Binance,
The US Department of Justice is proposing a three-year prison sentence for the founder and former CEO of Binance, Changpeng Zhao. According to the DOJ, Changpeng Zhao should face consequences for his role in facilitating the cryptocurrency exchange's violation of federal sanctions and anti-money laundering regulations.
Both the prosecution and Zhao's defense team have agreed to a fine of $50 million and a three-year prison term. This comes in response to Zhao's admission of violating the Bank Secrecy Act last November.
The DOJ document notes that the punishment is not only intended for Zhao himself but also serves as a warning to the entire world. According to the Department, the repercussions of Zhao's violations of US law were significant, hence the justification for a stricter penalty.
Originally, under the plea deal, he faced up to 18 months in prison, but the DOJ argues that given the scale of his offense, a 36-month prison term is more appropriate.
The court was initially set to deliver the verdict at the end of February, but it has been postponed to April 30. Zhao, who has been unable to return to Dubai, where his partner and some of his children reside, for a year, awaits further developments in the case.
Binance, the world's largest cryptocurrency exchange, has also admitted to violations and agrees to significant fines. However, a court-appointed monitor has not yet been named.
