The US Department of Justice wants Mr. Changpeng Zhao - former CEO of Binance - to be sentenced to 36 months in prison after pleading guilty last year.
The US Department of Justice wants to double Changpeng Zhao's prison sentence. Photo: CCN
Binance founder and former CEO Changpeng Zhao (CZ) is at risk of facing up to 3 years in prison for operating a cryptocurrency exchange in violation of anti-money laundering regulations, according to the US Department of Justice (DOJ). ) said on the evening of April 23 (US time).
DOJ attorneys filed a motion with the court, arguing that CZ should serve 36 months in prison and pay a $50 million fine after admitting to violating the Bank Secrecy Act.
“The verdict in this case is not only a wake-up call to Changpeng Zhao but also to the whole world. CZ has profited greatly from violations of US law and the price to pay is an appropriate penalty, enough to deter those who intend to build fortunes and business empires in violation of the law. United States,” the case file said.
Initially, the former CEO of the world's largest cryptocurrency exchange was proposed to be sentenced to up to 18 months in prison under the terms of the plea agreement. However, the US Department of Justice seems to have changed its mind according to the argument in the filing on April 23: "The extent and consequences of Zhao's wrongdoing are very large, therefore, increasing the penalty will be necessary." Punishment is appropriate."
The $50 million fine was agreed upon by both the prosecution and Zhao's defense attorney. Initially, the former CEO of Binance was expected to be sentenced at the end of February, but the trial was postponed until April 30.
Since appearing before the federal court in Seattle last November, Mr. Changpeng Zhao has been required by US officials to remain in US territory and is not allowed to return to his previous residence in the UAE because of concerns about his health. afraid to run away. Even though the former CEO offered to mortgage $4.5 billion in assets, he was still not allowed by the US to return to the UAE . The US prosecutor also asked CZ to surrender all his passports before sentencing to avoid him leaving the country.
Binance, the world's largest cryptocurrency exchange, pleaded guilty at the same time as CZ, agreeing to pay a $4.3 billion fine and report to a court-appointed monitor. This position has not yet been filled. However, Binance in early April established a corporate board of directors for the first time, with 4 members being senior managers of the exchange, including CEO Richard Teng , and 3 other figures from outside. Binance.
Attending the Paris Blockchain Week event a few days ago, Mr. Teng revealed that he is in the process of choosing an official headquarters for Binance.
Since Mr. Zhao resigned, all work of the exchange has been handed over to his successor, CEO Richard Teng . However, there are many rumors surrounding the real power in the hands of Ms. Yi He , co-founder of Binance and a woman with an extremely close relationship with CZ. Ms. Yi He also recently revealed that Mr. Zhao's situation in the US is still normal.
While in the US, the former Binance CEO began building a new educational project called Giggle Academy , aimed at providing knowledge to future generations.
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