Ex-SEC Official Reacts To DOJ Seeking 3-Year Prison Term For Binance Founder CZ

Coingapestaff
April 24, 2024
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US SEC To Pause Ripple Lawsuit After Coinbase, Ex-SEC John Reed Stark

Highlights

  • John Reed Stark highlights CZ's violation of U.S. laws at unprecedented levels.
  • Reed cracks down on CZ and his looming sentence on Aril 30.
  • Binance founder CZ under scrutiny due to his violation of AML (Anti Money Laundering Laws).

Former U.S. SEC official John Reed Stark recently took to a post on X, spotlighting the DOJ’s filing with the U.S. Federal Court in Seattle to seek a 36-month prison sentence for Binance founder CZ (Changpeng Zhao) on allegations of violating the anti-money laundering laws (AML) on U.S. grounds. In a statement shared by the SEC veteran today, April 24, keen attention was drawn to Zhao’s sentencing, which remains poised for April 30, with Reed further cracking down on CZ’s role in Binance supporting crimes. 

Reportedly, Binance offered illegal and unlicensed money transmitting, and sanctions violations aid to designated terrorist groups, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS, while functioning atop U.S. grounds. This has ignited a bustle across the cryptocurrency landscape, with speculations surrounding the U.S. prosecutors’ decision to imprison Binance founder CZ for 36 months.

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Reed Highlights CZ’s Crimes

Ex-SEC official John Reed Stark’s post on X highlights Binance’s crimes and Zhao’s unprecedented violation of U.S. laws during his tenure as the CEO of the world’s largest crypto exchange. The Binance founder led the massive financial institution that processed trillions of dollars in cryptocurrency trades annually, reaping substantial profits while flouting U.S. regulations in hand.

This alleged disregard for legal responsibilities and failure to comply with U.S. financial guidelines is what sparked severe concerns orbiting the integrity of Binance’s operations. “Zhao’s sentence should reflect the gravity of his crimes. Financial institutions are the first line of defense for the U.S. financial system,” the SEC veteran added.

Reed’s remark promptly garnered noteworthy attention as speculations build up with CZ’s hearing date, April 30, nearing. Meanwhile, per U.S. prosecutors, Zhao’s deliberate breach of U.S. laws was not a mistake or oversight but rather a strategic decision to enrich his company’s business.

Also Read: 57,586 Bitcoin (BTC) Worth $3.81 Billion Moved On-Chain, What’s Happening?

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Binance Founder To Face Prison?

As mentioned above, recent reports from around the globe spotlight U.S. prosecutors’ hell-bent inclination to seek a 36-year imprisonment for Zhao. Facing a backlash across the global crypto community, Zhao is under heightened scrutiny, with expectations looming over CZ facing an imprisonment sentence on April 30.

Currently, the Binance founder is out on a $175 million bail bond. Nonetheless, per a recent hearing, “given the magnitude of Zhao’s willful violation of U.S. law and its consequences, a sentence of 36 months is warranted,” U.S. prosecutors argued.

Also Read: Hong Kong Officially Nods For Two Spot Bitcoin & Ethereum ETF

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.