Binance Founder Changpeng Zhao Could Serve Three-Year Prison in US

Changpeng Zhao, the founder of Binance, may face three years in prison in the United States

American prosecutors want Binance founder Changpeng Zhao, the founder and former CEO of Binance, the largest crypto exchange in the world, to serve a three-year prison sentence after he pleaded guilty to violating data privacy laws. Prosecutors argued for it in a filing on Tuesday night in the Seattle Federal Court.

The lawyers stated that he should be given a twice longer sentence than the maximum 18 months recommended by federal law guidelines. This should send the message that "the right choice is always complying with the law."

Zhao's lawyer sought non-jail as a sentence option. U.S. District Judge Richard Jones will pass Zhao's sentence at the April 30 court hearing. The Binance founder, Changpeng Zhao was once regarded as the cryptocurrency giant. Now, over the age of 47, he has relinquished CZ's leadership of Binance by admitting that Binance evaded the anti-money laundering requirements under the Bank Secrecy Act.

Binance was handed a criminal penalty of US$4.32B. Prosecutors explained that illegal Binance's business model that attracted criminals wiped out about 100,000 transactions of designated terrorist groups among Hamas, al Qaeda, and ISIS.

In addition, the authorities alleged that Binance founder Changpeng Zhao's platforms had been involved in the trading of CSA materials, and a significant part of the ransom money had been turned on the platforms.

prosecutors said, "He made a business decision that violating U.S. law was the best way to attract users, build his company, and line his pockets." He has received a no-cash bond and also conceded that he would not challenge any sentence within the federal guidelines.

In requesting leniency, the council acknowledged the offender's "unflinching" acceptance of responsibility, the US$50 million criminal fine, and that no defendant in a case at about the same level has been imprisoned.

They also mentioned that Binance set the standard for compliance in the industry even with the initial setbacks that resulted in prosecution. Zhao began Binance in 2017.

The Binance fine consisted of a US$1.81 billion criminal penalty and another US$2.51 billion in restitution. Binance founder Changpeng Zhao also reportedly spent US$50 million on the U.S. Commodity Futures Trading Commission, according to his legal consultant.