Crypto Exchange Binance Founder Changpeng Zhao could be Sentenced to 3 Years of Prison

Changpeng had admitted charges of violating laws related to money laundering. In this case, the prosecution has requested the Seattle Federal Court to sentence Changpeng to three years. It says imposing the maximum 18-month sentence twice under federal guidelines would reflect the level of willful violations by Changpeng and send a message that “the right choice is to follow the law every time.” Changpeng’s lawyers have requested probation for him. The sentence in this case can be pronounced on April 30.

in this matter Binance had agreed to pay a criminal penalty of approximately $4.32 billion. Binance violated anti-money laundering and sanctions laws and did not report more than a million suspicious transactions. These included transactions with banned terrorist groups such as Hamas, Al Qaeda and Islamic State of Iraq and Syria. This exchange was started in 2017. In this case, Changpeng has been granted bail on a bond of $175 million.

US Attorney General Merrick Garland said, “Binance made it easier for criminals to obtain their laundered funds. The exchange did not comply with the law. It only pretended to comply.” In this case, Changpeng will personally have to pay about five million dollars. However, some legal experts said the outcome was good for Changpeng as it would preserve much of his wealth and allow him to retain his stake in the exchange. Earlier, Sam Bankman-Fried, founder of another crypto exchange FTX, was found guilty in a fraud case. After this there was a huge decline in the crypto market.