Breaking: Binance Founder Changpeng Zhao Likely To Face 36 Months In Prison

In a court filing on Tuesday, April 23, U.S. prosecutors said that Binance founder Changpeng Zhao should serve 36 months in prison over the allegations of violating the anti-money laundering laws (AML). As per the latest reports, Zhao, who stepped down as the Binance chief last November, will face the sentence on April 30.

Changpeng Zhao To Face the Whip

As per the Federal sentencing guidelines, CZ should face a maximum of 18 months in prison. Zhao and his legal team have reportedly agreed not to contest any hearing up to that length. The Binance founder is currently in the US on a $175 million bail bond.

However, during the hearing at the U.S. district court for the western district of Washington, U.S. prosecutor said: “Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-guidelines sentence of 36 months is warranted”.

The U.S. prosecutors further blamed CZ for deliberately playing around with US laws. According to U.S. prosecutors, Zhao and Binance deliberately targeted U.S. users as part of Binance’s expansion strategy. Despite being aware that this approach subjected Binance to U.S. laws, they knowingly operated the company in violation of these laws for an extended period.

Zhao himself acknowledged that disregarding U.S. regulations was crucial for Binance’s growth and profitability. He boasted that adhering to U.S. law would have limited Binance’s size and revenue over the past two years, including revenue generated from the network effect, the prosecutors noted in the filing.

According to U.S. prosecutors, Zhao’s deliberate breach of U.S. law was not a mistake or oversight. Instead, it was a calculated business choice aimed at attracting users, expanding his company, and enriching himself.

Binance Facilitated Suspicious Transactions

The prosecutors have alleged that Binance failed to report over 100,000 suspicious transactions involving designated terrorist groups such as Hamas, al Qaeda, and ISIS, according to U.S. authorities.

Additionally, Binance’s platform allegedly facilitated the sale of child sexual abuse materials and received a significant portion of ransomware proceeds. As part of the SEC settlement, Zhao, also known as CZ, agreed to pay $50 million and disassociate himself from Binance, which he established in 2017. Binance faced penalties including a $1.81 billion criminal fine and $2.51 billion in restitution