Updated: April 24, 2024, 3:58 AM EDT
U.S. prosecutors filed Tuesday seeking a 36-month prison sentence for Binance founder and former CEO Changpeng Zhao.
“Zhao’s intentional violation of U.S. law was neither accidental nor a mistake,” the Justice Department said. filing. “He made the business decision that breaking U.S. law was the best way to attract users, establish a company, and line his pockets.”
The DOJ added, “The United States recommends that the court impose a sentence of 36 months in prison, which is higher than the guidelines.”
Zhao’s defense committee soon responded to the DOJ’s recommendation by submitting its own sentencing memorandum. The court requested that he be sentenced to probation.
“Mr. Zhao paid a hefty fine. He instructed the company to plead guilty before doing so.
Zhao’s legal team said it was “working with the courts and three federal agencies to resolve the related civil charges,” and added, “These factors strongly support leniency.”
November, Zhao plead guilty The United States agreed to a $50 million fine for anti-money laundering and sanctions violations. He stepped down from his position as CEO. Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history.
Zhao’s sentencing is scheduled for April 30, but the former Binance CEO remained free after posting $175 million bail. A judge previously denied his request to travel to Dubai.
Binance appointed Richard Teng as its new CEO following Zhao’s departure.
Added update to include sentencing memorandum submitted on Zhao’s behalf.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.