Breaking: Binance Founder Changpeng Zhao Likely To Face 36 Months In Prison

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On April 23, U.S. prosecutors filed a court document suggesting that Binance founder Changpeng Zhao be given a prison term of 36 months due to accusations of breaking anti-money laundering laws (AML). According to recent news, Zhao, who relinquished his role as Binance CEO last November, is set to receive this sentence on April 30.

Changpeng Zhao To Face the Whip

According to the Federal sentencing guidelines, CZ (Changpeng Zhao) could be sentenced to a maximum term of 18 months in prison. Zhao and his lawyers have reportedly decided not to challenge any hearing that lasts up to this duration. Currently, CZ is in the United States on a $175 million bond.

At the hearing in the Western District Court of Washington, the US prosecutor argued: “Considering the seriousness of Zhao’s intentional break of U.S. law and its repercussions, a prison term longer than the recommended guideline of 2 years is justified.”

U.S. prosecutors accused CZ and Binance of intentionally breaking American laws. They allegedly focused on attracting American users as part of Binance’s growth plan. Even though they were aware that this action would make Binance subject to U.S. jurisdiction, they continued to run the business in defiance of these laws for an extended time.

According to Zhao’s own admission, disregarding U.S. regulations significantly contributed to Binance’s expansion and financial success. He proudly stated that following U.S. law would have restrained Binance’s growth and earnings during the previous two years, including profits derived from network effects, as mentioned in the prosecutors’ filing.

Based on the U.S. authorities’ assertion, Zhao’s violation of American laws wasn’t an unintentional error or overlooked detail. Rather, it represented a well-thought-out commercial decision aimed at luring customers, broadening his business scope, and amassing personal wealth.

Binance Facilitated Suspicious Transactions

According to U.S. officials, prosecutors claim that Binance did not disclose approximately 100,000 potentially illicit transactions linked to organizations like Hamas, al Qaeda, and ISIS to the relevant authorities.

Additionally, Binance’s platform allegedly facilitated the sale of child sexual abuse materials and received a significant portion of ransomware proceeds. As part of the settlement, Zhao, also known as CZ, agreed to pay $50 million and disassociate himself from Binance, which he established in 2017. Binance faced penalties including a $1.81 billion criminal fine and $2.51 billion in restitution

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2024-04-24 09:23