Binance founder and former CEO Changpeng Zhao could potentially face a 36-month prison sentence after pleading guilty to violating anti-money laundering laws. U.S. prosecutors stated in a recent court filing that such a sentence would serve as “adequate deterrence to Zhao and to others who may also be tempted to put profits above compliance with U.S. laws.“
“Zhao committed serious crimes in a deliberate scheme to grow Binance as quickly as possible and then to maintain its dominance as the largest cryptocurrency exchange. His crimes warrant meaningful prison time.” – U.S. prosecutors
Prosecutors also claim that Zhao’s actions were a deliberate attempt to quickly expand Binance’s operations and uphold its status as the top cryptocurrency exchange. According to U.S. authorities, the former head of Binance opted not to establish and uphold an effective know-your-customer (KYC) system, which “prevented effective transaction monitoring and enabled suspicious and criminal users to conduct transactions through Binance.“
Zhao had previously pleaded guilty to charges of violating the Bank Secrecy Act in November 2023. While he is currently out on a $175 million release bond in the U.S., his sentencing hearing is scheduled for Apr. 30. Earlier, a U.S. judge denied Zhao’s request to travel to Dubai, citing concerns about his significant wealth posing a flight risk.
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