US Pursues 3-Year jail For Binance’s Founder Zhao

US prosecutors seek a three-year prison term for Changpeng Zhao, Binance’s founder, after his money laundering guilty plea. They argue that a longer sentence reflects the severity of his violations and sends a strong compliance message. Zhao’s lawyers request probation. The sentencing is set for April 30 before US District Judge Richard Jones.

Zhao, once a prominent figure in the crypto industry, resigned as Binance’s chief in November. Binance and Zhao admitted to violating anti-money laundering laws and agreed to a hefty criminal penalty. Prosecutors allege that Binance facilitated suspicious transactions involving terrorist groups and supported the sale of illicit materials, benefiting from ransomware proceeds.

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Zhao’s defense emphasizes his acknowledgment of responsibility, substantial fines, and efforts to enhance compliance. They highlight Zhao’s role in establishing Binance as a compliance leader despite initial failures.

Zhao, out on bond, agreed not to contest a sentence within federal guidelines. Binance’s penalty includes a criminal fine and restitution, with Zhao also paying fines to the US Commodity Futures Trading Commission.

The case, US v. Zhao, is before the US District Court, Western District of Washington.