Binance’s co-founder and former CEO, Changpeng Zhao, is set to face sentencing in a Seattle courtroom today, Tuesday, April 30, 2024, with U.S. prosecutors pushing for a three-year prison term.
They argue that no one has breached the Bank Secrecy Act as severely as Zhao did; thus, the sentence they request is justifiable. Notably, the three-year imprisonment term surpasses the range for such an offence.
Zhao was accused of turning a blind eye to money laundering practices on the exchange platform, including transactions supporting child exploitation, drug trafficking, and terrorism. According to U.S. Authorities, Binance allowed more than 1.5 million virtual currency trades — totalling nearly $900 million — that violated U.S. sanctions.
In light of the allegations, Zhao admitted guilt and resigned as CEO of Binance in November 2023. The exchange also agreed to a $4.3 billion settlement penalty to address these issues.
“I feel the need to own up to my actions and move on from this phase of my life”
Zhao reportedly stated as he admitted to one charge of neglecting to stop money laundering.
“I aspire to make amends. Otherwise, I wouldn’t have appeared here today.”
Despite his attorneys advocating for no prison time due to his cooperation in returning from the UAE – where he resides with his family – to admit guilt in the U.S., concerns remain over sentencing implications under the Bank Secrecy Act.
RELATED: U.S. Regulators Are Not Letting Up on Binance and Former CEO CZ; Here’s Why
Zhao was perhaps best known as the chief rival to Sam Bankman-Fried, the founder of FTX, the second-largest crypto exchange, before it collapsed in 2022. Notably, Bankman-Fried was recently sentenced to 25 years in prison for his involvement in the massive fraudulent acts the FTX’s management committed against their customers.
As Zhao’s legal proceedings unfold, the cryptocurrency community awaits the outcome, as it could set a precedent for future cases involving money laundering in the digital asset space.
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