US prosecutors seek 3 years in prison for Binance founder CZ
Key Takeaways
- U.S. prosecutors have recommended a 36-month prison sentence for Binance founder Changpeng Zhao, exceeding federal guidelines that suggest a maximum of 18 months.
- As part of the guilty plea agreement, Zhao agreed to step down as CEO and pay Binance $4.3 billion in fines to resolve the charges and continue its U.S. operations.
- Zhao received support from 161 letters advocating leniency.
U.S. prosecutors made the following suggestions: Changpeng “CZ” Zhao sentenced to 36 months in prison Founder of Binance, the world’s largest cryptocurrency exchange.
The recommendations are detailed in an April 23 court filing in the U.S. District Court for the Western District of Washington. It exceeds federal sentencing guidelines, which propose a maximum of 18 months.
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The prosecution also suggested the following: A fine of 500,000 won, It mentions the seriousness of Zhao’s actions.
Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, a sentence of 36 months under the above guidelines is warranted.
Zhao as part of a settlement with the Justice Department. He was found guilty of violating the Anti-Money Laundering Act. He stepped down from his position as CEO of Binance. November 2023.
He and Binance too Agreed to pay $4.3 billion in fines. Closing the criminal case allows cryptocurrency exchanges to continue operating in the United States in compliance with regulations.
today Posted $175 million bond. CZ acknowledged his wrongdoing and expressed regret for his actions in a letter to Judge Richard A. Jones.
There is no excuse for Binance’s failure to establish the necessary compliance controls. I guarantee that this encounter with the criminal justice system will be my last.
There is also Zhao. We received a lot of support, including 161 letters submitted to the court from family members, colleagues, and influential figures. All advocate leniency in his sentencing. these letters Describes CZ as a dedicated professional and caring father, It highlights his contributions to the cryptocurrency industry and his various philanthropic activities.
Tigran Gambaryan, Binance’s Head of Financial Crimes Compliance, despite currently being detained in Nigeria, also wrote:
While acknowledging CZ’s previous mistakes, I can attest that his integrity, business acumen, and philanthropy have had a ripple effect that has not only positively impacted Binance’s corporate philosophy, but also lives globally.
Despite the legal proceedings, Zhao remains active in the cryptocurrency community. He recently Announced Giggle Academy. An educational initiative that introduces technology to young learners.
Sentencing for Changpeng Zhao is scheduled for April 30.
As the date approaches, the cryptocurrency community awaits a final decision considering the potential impact on the industry.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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