The U.S. Department of Justice (DOJ) is reportedly seeking a tougher sentence for Binance founder Changpeng Zhao for violating money laundering laws.
According to Reuters, US prosecutors want Zhao to serve three years in prison, or twice the maximum 18 months recommended under federal guidelines.
In November, Zhao stepped down as CEO of Binance after he and the world’s largest crypto exchange pleaded guilty to violations related to the anti-money laundering requirements of the Bank Secrecy Act.
Binance is also accused of failing to report more than 100,000 suspicious transactions with terrorist groups, supporting the sale of child sexual abuse materials and being used for laundering ransomware proceeds.
According to Attorney General Merrick B. Garland, Binance became the world’s largest cryptocurrency exchange partly because of the crimes it committed.
“[N]ow it is paying one of the largest corporate penalties in US history.
The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”
Prosecutors say the three-year sentence would reflect the magnitude of Zhao’s willful violations and send a message about the necessity of complying with the law at all times.
Meanwhile, Zhao’s lawyers requested probation, citing that their client has accepted responsibility and is subject to a $50 million criminal fine.
Zhao is currently free on a $175 million bond. The former CEO has agreed not to appeal any sentence within the federal guidelines, and U.S. District Judge Richard Jones is set to sentence him on April 30th.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Ormalternative/WhiteBarbie
