The U.S. Department of Justice (DOJ) is reportedly pushing for a harsher sentence for Changpeng Zhao, the founder of Binance, due to his violation of money laundering laws. Reuters has stated that U.S. prosecutors are seeking a three-year prison term for Zhao, which is double the maximum recommended under federal guidelines, set at 18 months.
In November, Zhao resigned as CEO of Binance after both he and the world’s largest cryptocurrency exchange pleaded guilty to breaching the Bank Secrecy Act’s anti-money laundering regulations. Additionally, Binance has been accused of failing to report over 100,000 suspicious transactions involving terrorist groups, facilitating the sale of child sexual abuse materials, and being utilized to launder the proceeds of ransomware attacks.
Attorney General Merrick B. Garland has asserted that Binance achieved its status as the largest cryptocurrency exchange in the world partly due to the illegal activities it engaged in. Garland stated, “[N]ow it is paying one of the largest corporate penalties in US history. The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”
Prosecutors argue that a three-year sentence would accurately reflect the severity of Zhao’s intentional violations and serve as a deterrent, emphasizing the importance of adhering to the law at all times. Conversely, Zhao’s legal team has requested probation, highlighting their client’s acceptance of responsibility and the imposition of a $50 million criminal fine.
Zhao is currently out on a $175 million bond and has agreed not to appeal any sentence within the federal guidelines. U.S. District Judge Richard Jones is scheduled to deliver the sentencing on April 30th.
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