U.S. Prosecutors Recommend Three-Year Sentence for Binance’s Founder, Zhao

• Changpeng Zhao faces a proposed 36-month sentence for U.S. law violations.
• Zhao’s defense seeks probation, citing his cooperation and financial penalties.
• Zhao remains free on a $175 million bond, with travel restrictions pending sentencing.

U.S. prosecutors are seeking 36 months of imprisonment for Changpeng Zhao, founder and former chief executive of Binance. This legal action follows Zhao’s November guilty plea to charges related to anti-money laundering and sanctions violations. 

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Prosecution and Defense Positions

In the detailed court filing, the Department of Justice emphasized that Zhao’s actions were deliberate, arguing he chose to flout U.S. laws as a strategy to expand his business and personal wealth. “Zhao’s willful violation of U.S. law was no accident or oversight,” the DOJ stated. They urged the court to impose an above-Guidelines sentence of 36 months of imprisonment, highlighting the severe nature of the offenses.

In response, Zhao’s defense counsel filed a counter-memo advocating for probation rather than prison. They pointed out Zhao’s cooperative actions, including directing his company to plead guilty and settling related charges with multiple federal agencies. “Mr. Zhao has paid massive fines and his proactive legal engagements strongly favor leniency,” the defense memo argued.

Legal Proceedings and Corporate Changes

Zhao, who pleaded guilty to anti-money laundering and sanctions violations in November, has already agreed to pay a substantial $50 million fine. He also stepped down from his role as CEO of Binance, which agreed to a historic $4.3 billion settlement with U.S. authorities. This settlement represents one of the largest in corporate history, underscoring the scale of the legal issues addressed.

Currently, Zhao remains free on a $175 million bond, with restrictions that have barred travel to locations like Dubai, pending his sentencing scheduled for April 30. Meanwhile, Binance moved forward with leadership changes, appointing Richard Teng as the new CEO following Zhao’s resignation.

This case unfolds as the cryptocurrency industry watches closely, marking a chapter in the ongoing dialogue between digital finance leaders and regulatory authorities.

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