Binance founder Changpeng Zhao should be sentenced to 36 months in prison over allegations that he violated anti-money laundering laws (AML), US prosecutors said in a lawsuit filed on Tuesday (April 23). According to recent reports, Zhao, who stepped down as Binance CEO last November, will face sentencing on April 30.
Changpeng Zhao was hit
Under federal sentencing guidelines, CZ faces a maximum sentence of 18 months in prison. Zhao and his legal team reportedly agreed not to object to any hearing of this length. The founder of Binance is currently in the USA with a bond of $ 175 million. But during the hearing in the US district court for the western district of Washington, the US prosecutor said:
Considering the extent of Zhao’s willful violation of US law and its consequences, a 36-month prison sentence above the guidelines is warranted.
US prosecutors also accused CZ of deliberately tampering with US laws. According to US prosecutors, Zhao and Binance deliberately targeted US users as part of Binance’s expansion strategy. Even though they were aware that this approach subjected Binance to US laws, they knowingly operated the company in violation of those laws for a long time.
Critical claims about Binance
Zhao acknowledged that ignoring US regulations was crucial to Binance’s growth and profitability. He boasted in the filing that adhering to U.S. law would limit Binance’s size and revenue over the past two years, including revenues from the network effect, prosecutors said. According to US prosecutors, Zhao’s deliberate violation of US law was not a mistake or carelessness. Instead, it was a calculated business choice aimed at attracting users, expanding his company, and enriching himself.
Prosecutors alleged that Binance failed to report more than 100,000 suspicious transactions related to terrorist groups such as Hamas, Al Qaeda and ISIS, according to US officials. Additionally, the Binance platform allegedly facilitated the sale of child sexual abuse materials and received a significant portion of ransomware revenues. As part of the deal, Zhao, also known as CZ, agreed to pay $50 million and sever his relationship with Binance, which he founded in 2017. cryptokoin.com As we reported, Binance faced penalties including a $1.81 billion fine and $2.51 billion in damages.
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