US Prosecutors Seek Three-Year Prison Term for Binance Founder
US prosecutors have urged for Binance founder and former CEO Changpeng Zhao (CZ) to face a three-year prison sentence, as reported by Reuters on Wednesday.
Despite Federal sentencing guidelines capping the maximum sentence at 18 months, US prosecutors argue that a 36-month sentence is appropriate.
CZ, along with Binance, has been under the scrutiny of US regulators since 2018. In a court filing to the District Court for the Western District of Washington, US prosecutors recommended that CZ serve 36 months in prison.
Changpeng Zhao pleaded guilty to violating US laws against money laundering in November and subsequently resigned from his position. CZ is scheduled to stand trial in Seattle starting April 30.
Although Federal sentencing guidelines stipulate a maximum sentence of 18 months for the Binance founder, prosecutors are advocating for a longer term. Zhao has previously agreed not to contest any sentence of up to 18 months of jail time.
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Awaiting sentencing, the Binance CEO has remained in the United States on a $175 million bond.
Authorities allege that the exchange failed to report more than 100,000 suspicious transactions involving designated terrorist groups. Prosecutors also claimed that “Binance’s platform supported the sale of child sexual abuse materials and was a recipient of a large portion of ransomware proceeds,” according to Reuters.
In November, Binance agreed to pay a $4.3 billion settlement to the US Department of Justice.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
