Binance Founder Changpeng Zhao Faces 36-Month Sentence for Money Laundering Violations
Summary:
US prosecutors have proposed a 36-month prison sentence for Binance founder Changpeng "CZ" Zhao, who pleaded guilty to violating anti-money laundering laws. Zhao, who stepped down as CEO in November 2023, has paid a $175-million bond and agreed not to appeal against any sentence up to 18 months. As part of the settlement, Zhao and Binance will pay $4.3 billion in fines to the US government. In return, Binance can continue its operations, provided it complies with US laws.
In readiness for the April 30 sentencing of Changpeng "CZ" Zhao, who founded Binance, US prosecutors have apparently established a prison term for the ex-CEO. Binance's founder Changpeng Zhao is to be incarcerated for a period of 36 months following his guilty plea for breach of anti-money laundering regulations, according to US prosecutors' assertions made to Reuters on the 24th of April.
The prosecutors, in their communication to the U.S. district court for the western district of Washington, asserted that due to the sheer intensity of Zhao's intentional breach of U.S legislation and its repercussions, a sentence exceeding the guidelines of 36 months is justified.
In November 2023, Zhao admitted to not adhering to the money laundering regulations in the US and subsequently resigned from his role at Binance. Reuters cited that federal sentencing guidelines propose a maximum prison term of 18 months for Zhao, who had ironclad agreement against entreaties to any sentencing up to that duration. Currently, Zhao is out on bail paying a bond of $175-million in the US.
CZ, after confessing to the breach of US money laundering regulations, along with Binance, consented to pay a whopping $4.3 billion fine to settle their criminal case with the U.S. government. Subsequently, Binance was given the green light to carry on its operations provided it abided by US regulations.
More details will be disclosed as they come to light since this is an unfolding story.
Published At
4/24/2024 9:24:16 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.