May 25, 2024
Binance Founder
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U.S. Prosecutors Seek Jail Time for Binance Founder CZ

As the legal proceedings against Binance founder Changpeng “CZ” Zhao unfold, U.S. authorities are gearing up to hand down a sentence on April 30. As of recently, the prosecutors have advocated for a prison term for Zhao, urging the court to impose a 36-month sentence.

Prosecutors Advocate for 36-Month Prison Term

In a court filing submitted on April 23 to the U.S. district court for the Western District of Washington, prosecutors emphasized the severity of Zhao’s violations of money laundering laws.

The prosecutors stated in the filing to the U.S. District Court for the Western District of Washington:

“Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-guideline sentence of 36 months is warranted.”

The filing further highlighted that the proposed sentence, coupled with a $50 million fine, strikes a balance in addressing the relevant legal factors and achieving the goals of sentencing.

Binance Founder
Binance founder and ex-CEO Changpeng Zhao at the Viva Technology conference in Paris in 2022. Source: CNBC

CZ’s Legal Battle and Future Endeavors

Zhao, who founded Binance with his partner, Yi He, had previously pleaded guilty to breaching money laundering requirements in the U.S. and relinquished his CEO position at Binance in November 2023.

Under federal sentencing guidelines, Zhao faces a maximum prison term of 18 months without appeal, while he remains at liberty in the U.S. on a $175 million bond.

Alongside his guilty plea, Zhao faced a substantial $50 million fine, along with larger penalties imposed on Binance.

Despite these legal challenges, Zhao remains active in the cryptocurrency industry. He recently unveiled a new educational venture, Giggle Academy, focused on educating young children about crypto and blockchain technology.

This initiative underscores Zhao’s ongoing commitment to the industry, despite the regulatory hurdles he faces.

As the cryptocurrency community awaits the outcome of the Binance founder’s sentencing, this legal battle serves as a stark reminder of the regulatory scrutiny surrounding the industry and its key players.

Image by wirestock on Freepik

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