US prosecutors have proposed a 36-month prison sentence for former Binance CEO Changpeng Zhao. Prosecutors argued that such a sentence, which is more than double the advisory guidelines, reflects the seriousness of the charges against Zhao, CNBC reported.
The recommendation, outlined in a sentencing memorandum filed in Washington’s Western District Court, underscores the severity of the charges against Zhao, who stepped down from his post last November following a plea deal with the US Justice Department.
US prosecutors indictment against Zhao
US prosecutors said the 36-month prison sentence was necessary to underline the seriousness of the charges against Zhao, which include failing to implement anti-money laundering measures mandated by the Bank Secrecy Act. The memo emphasized Zhao’s alleged role in allowing Binance to process transactions with the proceeds of illegal activities, including transactions from sanctioned countries.
The lawsuit against Zhao comes amid legal challenges for Binance, with the exchange being sued by both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The charges include mishandling customer assets and operating an illegal, unregistered exchange in the US. Authorities have ordered Binance to pay a hefty fine, with Zhao agreeing to a $50 million fine as part of a plea deal.
Despite Zhao’s alleged confidence in avoiding consequence, prosecutors insist his apprehension is a turning point. Zhao, who stepped down as CEO last year, has not commented publicly on recent developments. His official sentencing will take place on April 30.
Expect constant updates as this story develops.
This article was written by Jared Kirui at www.financemagnates.com.