The sentence will follow an admission of money laundering in the US
US Prosecutors in the federal money laundering case against Binance founder Changpeng “CZ” Zhao are recommending jail time for the former CEO. He’ll be sentenced in US District Court on April 30, and he could go to prison for 36 months after admitting to violating US money laundering laws.
“Given the magnitude of Zhao’s willful violation of US law and its consequences, an above-guideline sentence of 36 months is warranted,” wrote prosecutors in the document submitted to the US District Court of Western Washington.
“That sentence, together with the agreed $50 million fine, is sufficient but not greater than necessary to balance the relevant 18 U.S.C. § 3553(a) factors and achieve the goals of sentencing,” reads the filing.
In November 2023, Zhao resigned from his position as Binance CEO after pleading guilty to violating US money laundering regulations. As a result, he received a direct fine of $50 million, while Binance was subjected to even more significant penalties.
Online reports say that Zhao could face a maximum sentence of 18 months in prison as per federal sentencing guidelines. He had previously agreed not to appeal any sentence up to the aforementioned duration. Zhao has been out on a $175 million bond while awaiting sentencing in the US.
After admitting his guilt, CZ and Binance agreed to pay $4.3 billion in fines to close the criminal case. Binance was allowed to continue operating as long as it complies with US laws. However, it also now faces issues in Canada and the Philippines that could impact its operations.
