US prosecutors are seeking a three-year prison sentence for Zhao Changpeng, the founder and former chief executive of the world’s largest cryptocurrency exchange, Binance. Zhao pleaded guilty to violating laws against money laundering, and prosecutors believe that the severity of his crimes warrants a sentence that is double the maximum 18 months recommended under federal guidelines. They argue that Zhao’s actions were willful and deliberate, and that a significant sentence is necessary to send a message that violating the law will not be tolerated.
Zhao’s lawyers, on the other hand, have requested probation. They cite his lack of prior convictions, his acceptance of responsibility, and his payment of a $50 million criminal fine. They also argue that Zhao has made Binance an industry leader on compliance and that he deserves leniency.
The sentencing hearing is scheduled for April 30th. US District Judge Richard Jones will ultimately decide Zhao’s fate. Binance has already agreed to a $4.32 billion criminal penalty for its role in the money laundering scheme. The penalty includes a $1.81 billion criminal fine and $2.51 billion of restitution.
The case against Binance and Zhao has been closely watched by the cryptocurrency industry. It is a reminder that even the largest and most successful cryptocurrency exchanges are not immune to prosecution for illegal activities. It is also a sign that US regulators are taking a more aggressive approach to enforcing anti-money laundering laws in the cryptocurrency space.
