The US Department of Justice (DOJ) is reportedly seeking harsher punishment for Binance founder Changpeng Zhao for violating money laundering laws.
According to ReutersU.S. prosecutors want Zhao to serve three years in prison, or twice the maximum 18 months recommended under federal guidelines.
In November, Zhao stepped down as CEO of Binance after he and the world’s largest crypto exchange pleaded guilty to violations related to the anti-money laundering requirements of the Bank Secrecy Act.
Binance is also accused of failing to report more than 100,000 suspicious transactions with terrorist groups, supporting the sale of child sexual abuse material and using it to launder ransomware proceeds.
According to Attorney General Merrick B. Garland: Binance became the world’s largest cryptocurrency exchange, in part because of the crimes it has committed.
“[N]Now the country is paying one of the largest corporate fines in US history.
The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”
Prosecutors say the three-year prison sentence would reflect the extent of Zhao’s intentional wrongdoing and send a message about the need to comply with the law at all times.
Meanwhile, Zhao’s lawyers asked for probation, saying their client has accepted responsibility and faces a $50 million criminal fine.
Zhao is currently free on $175 million bond. The former CEO has agreed not to appeal within federal guidelines, and U.S. District Judge Richard Jones will sentence him on April 30.
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