US Prosecutors Seek 36-Month Sentence for Binance Founder Changpeng Zhao

Changpeng Zhao (CZ), the founder and former CEO of Binance, faces a 36-month prison sentence after pleading guilty to violating anti-money laundering laws. This is according to a motion filed by US prosecutors, reports Reuters.

“Given the scale of the deliberate violation of US law and its consequences, a sentence exceeding the established term of 36 months is justified,” the document states.

Federal guidelines for Zhao’s case stipulate a maximum sentence of 18 months in prison, the publication noted. Prosecutors had previously expressed their intention to seek a harsher sentence, with discussions of up to a 10-year term.

In November 2023, CZ admitted to failing to maintain an effective anti-money laundering program at Binance while leading the company.

As part of an agreement with the US Department of Justice, he agreed to pay a $50 million fine and step down as CEO. The settlement amount for the exchange was $4.3 billion.

On April 30, a court hearing will be held to determine the punishment for the former Binance CEO.

Until sentencing, Zhao remains free, having posted a $175 million bail. Prosecutors have requested a travel ban for the former platform head, fearing he might flee. They cited his substantial assets outside the country and minimal ties to the United States as risks.

CZ’s lawyers contested the travel ban, but the court sided with law enforcement. In December, the court denied the entrepreneur’s request to return home to the UAE, despite a proposed $4.5 billion bail.

In April, Forbes estimated the former Binance chief’s wealth at $33 billion, placing him 50th on the billionaire rankings.

Richard Teng, the head of regional markets, succeeded Zhao as the CEO of the exchange.

Earlier, Yi He, co-founder of the platform and head of the venture company Binance Labs, reported a “positive situation” with CZ.