Federal prosecutors are recommending a 36-month prison sentence for the former CEO of cryptocurrency exchange Binance, Changpeng Zhao. They argue that his actions in failing to prevent money laundering warrant a sentence higher than the suggested 12-18 months. Zhao stepped down as CEO in 2023 following allegations of misconduct. The U.S. government has accused both Zhao and Binance of violating anti-money laundering laws and sanctions.
A new law, the Corporate Transparency Act, requires over 32 million businesses to report their real owners, or "beneficial owners", to the government. This helps track down illegal activities like money laundering. Affected companies must submit a Beneficial Ownership Information report to FinCEN by varying deadlines based on their establishment dates. Failure to comply can lead to significant fines or even imprisonment.
