U.S. Prosecutors Wants Three Years Imprisonment for Binance Founder Changpeng Zhao
In defense, Zhao's legal team has advocated for probation, highlighting his acknowledgment of responsibility and payment of a $50 million criminal fine.
U.S. prosecutors are pushing for Changpeng Zhao, the founder of Binance, to serve a three-year prison sentence following his guilty plea for violating anti-money laundering laws. according to a filing made on Tuesday. This development follows Zhao's guilty plea in November to charges of anti-money laundering and sanctions violations.
In the filing, The Department of Justice (DOJ) claimed that Zhao's violation of U.S. laws was an intentional and strategic move designed to increase user engagement, promote company expansion, and enhance personal profits.
In response to the DOJ's recommendation, Zhao's defense counsel submitted a sentencing memo advocating for probation. The memo emphasized Zhao's significant fines, his initiative in guiding Binance to a guilty plea, and the settlement of related civil charges with federal agencies as grounds for leniency.
In defense, Zhao's legal team has advocated for probation, highlighting his acknowledgment of responsibility and payment of a $50 million criminal fine. They also emphasized Zhao's role in elevating Binance's compliance standards, despite initial shortcomings that led to the legal proceedings.
Zhao has been released on a $175 million bond and has consented not to challenge any sentence that falls within federal guidelines. Binance's punishment encompasses a substantial $1.81 billion criminal fine along with $2.51 billion in restitution. Furthermore, Zhao has reached a personal settlement with the U.S. Commodity Futures Trading Commission, amounting to $50 million.
The legal community, cryptocurrency industry, regulators, and stakeholders are all intently awaiting the outcome of Zhao's sentencing on April 30th. This decision is anticipated to be highly influential, potentially establishing a precedent for future enforcement actions within the dynamic realm of digital assets.
