U.S. prosecutors seek 36-month sentence for ex-Binance CEO Changpeng Zhao

Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, is facing serious legal consequences.

U.S. prosecutors are recommending a 36-month prison sentence for his role in enabling money laundering.

This sentence is above the recommended guidelines, as prosecutors believe Zhao’s actions deserve a harsher punishment.

Zhao stepped down from his position at Binance last year after reaching a plea deal with the U.S. Department of Justice.

The deal required him to pay a significant fine.

However, the plea deal did not prevent prosecutors from pursuing jail time.

Prosecutors argue that Zhao’s actions were particularly egregious.

They allege that under his leadership, Binance failed to implement adequate anti-money laundering measures, allowing criminals to use the platform to launder illicit funds.

They also claim that Zhao violated U.S. sanctions by allowing transactions related to illegal activities, such as those involving individuals or entities subject to sanctions.

The prosecutors have asserted that Zhao’s actions were driven by a deliberate disregard for the law and a belief that he was above the rules.

They have characterized his actions as operating on a “Wild West” model, suggesting a lack of oversight and accountability.

Zhao’s official sentencing is scheduled for April 30.

The judge presiding over the case will determine the final sentence, which could range from no imprisonment to the recommended 36 months.

The outcome of the sentencing will have significant implications for Zhao personally, as well as for Binance, which is one of the largest cryptocurrency exchanges globally.