In a startling turn of events, Changpeng Zhao, the renowned founder of Binance, the globe’s most extensive cryptocurrency exchange, faces a potential 36-month prison term after admitting guilt to violating money laundering laws, as revealed by U.S. prosecutors in a recent court filing.
Scheduled for sentencing on April 30 in Seattle, Zhao resigned as Binance’s chief last November, coinciding with the admission of violations by him and the exchange, which incurred a staggering penalty of $4.32 billion.
U.S. prosecutors have urged the court for an extended sentence, citing the gravity of Zhao’s deliberate transgressions and their repercussions, despite federal guidelines capping the maximum term at 18 months. Zhao, under a prior agreement, refrained from appealing any sentence within this range and has remained free on a $175-million bond in the U.S.
Authorities allege that Binance neglected to report over 100,000 suspicious transactions involving designated terrorist organizations like Hamas, al Qaeda, and ISIS. Moreover, the platform allegedly facilitated the trade of child sexual abuse materials and received a significant share of ransomware proceeds.
Zhao, also known as CZ, has consented to a $50 million payment and severing ties with Binance, the platform he established in 2017.
Binance’s penalty encompasses a staggering $1.81 billion criminal fine alongside $2.51 billion in restitution.
