Federal prosecutors are urging a three-year prison sentence for Binance founder Changpeng Zhao, arguing that it is necessary to deter similar illegal activities within the financial industry. Zhao previously pleaded guilty to violating federal money laundering laws and sanctions. The prosecutors emphasize the severity of Zhao’s actions, including his deliberate decision to bypass U.S. regulations for financial gain. The sentence recommendation is significantly higher than the maximum of 18 months under federal guidelines, but prosecutors contend it is justified due to the magnitude of Binance’s violations.