Binance founder Changpeng Zhao could face three-year jail time
- Binance founder Changpeng Zhao could spend 36 months in prison, per a Reuters report.
- US prosecutors told the district court that Zhao’s willful violation of the law and its consequences warrants a 36-month sentence.
- Binance’s native token BNB is trading broadly unchanged at $607 on Wednesday.
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday. While Federal sentencing guidelines set the maximum sentence at 18 months, US prosecutors say that a sentence of 36 months is warranted.
Binance’s CZ faces trial on April 30
Binance and its former executive CZ have been under the scrutiny of US regulators since 2018. In a court filing, US prosecutors told the District Court for the Western District of Washington that CZ should serve 36 months in prison.
Changpeng Zhao pled guilty to the violation of US laws against money laundering in November, and stepped down from his position. CZ faces trial in Seattle starting April 30
While Federal sentencing guidelines set a maximum sentence of 18 months for the Binance founder, prosecutors are keen on pushing it higher. Zhao has previously agreed not to appeal against any sentence that stretches up to 18 months of jail time.
The Binance CEO has remained within the United States, awaiting sentencing, on a $175 million bond.
Authorities alleged that the exchange failed to report more than 100,000 suspicious transactions with designated terrorist groups. Prosecutors said that “Binance's platform also supported the sale of child sexual abuse materials and was a recipient of a large portion of ransomware proceeds,” Reuters reports.
Binance agreed to pay a $4.3 billion settlement to the US Department of Justice in November.
The exchange’s native token BNB is trading at $607 on Wednesday. BNB price has climbed this week since Monday’s close of $604.5.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
