Binance Founder Faces US Demand for 36-Month Prison Term
Changpeng Zhao, the founder of Binance, is facing the possibility of spending three years in prison for his involvement in money laundering, according to U.S. prosecutors. In a recent court filing, prosecutors argued that this sentence would serve as a sufficient deterrent to Zhao and others who might be tempted to prioritize profits over compliance with U.S. laws.
Prosecutors also claimed that Zhao’s actions were part of a deliberate strategy to rapidly expand Binance’s operations and maintain its position as the top cryptocurrency exchange. They asserted that Zhao failed to establish and maintain an effective know-your-customer (KYC) system, which allowed suspicious and criminal users to conduct transactions through Binance without detection.
Zhao had previously admitted guilt to violating the Bank Secrecy Act in November 2023. Although he is currently out on a $175 million release bond in the U.S., his sentencing hearing is scheduled for Apr. 30. A U.S. judge denied Zhao’s request to travel to Dubai, citing concerns that his substantial wealth posed a significant flight risk.
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