Key Points
- Binance’s founder, Changpeng Zhao, should serve 36 months in prison, according to a new court filing of US prosecutors.
- CZ is expected to be sentenced on April 30 in Seattle.
The latest reports coming from the Reuters press agency state that according to a new court filing, Binance’s founder, Changpeng Zhao, should serve 38 months in prison after he pleaded guilty to violating laws against money laundering.
According to the same reports, CZ is reportedly expecting his sentence on April 30 in Seattle. Binance’s founder stepped down as chief back in November following an admission from the exchange and himself regarding violations of money laundering laws. Back then, Binance agreed to a penalty of $4.32 billion.
A sentence of 36 months is warranted, US prosecutors say
Reuters notes that the US prosecutors told the US district court for the Western District of Washington that considering the magnitude of Zhao’s willful violation of the US law and its consequences, a sentence of 36 months is warranted.
Previously, the federal sentencing guidelines set a maximum sentence of 18 months in jail for CZ, who had agreed not to appeal against that length. He had been free in the US following a $175 million bond.
According to the US authorities, Binance failed to report over 100,000 suspicious transactions.
CZ agreed to pay $50 million and cease all involvement with Binance. Binance also received a penalty of $1.81 billion in criminal fines and a restitution of $2.51 billion.
CZ made headlines recently when new reports revealed that Binance received a full crypto license in Dubai, marking a significant win for the exchange, but only under the condition that CZ gave up voting control in the local entity.
Chief Executive Officer Richard Teng confirmed that Binance got a Virtual Asset Service Provider permit in the emirate. The new Binance CEO pledged to enhance compliance and relations with regulators all over the world.