Binance Founder Should Be Jailed For 36 Months, US Prosecutors Tells Court
Binance founder and former CEO, Changpeng Zhao, will likely receive his sentence on April 30, after pleading guilty to money laundering in November 2023. As the United States authorities prepare to sentence Changpeng Zhao, prosecutors have requested jail time for the former CEO.
Prosecutors Request 3 Years Jail Time
According to the court filing on April 23, Binance founder Zhao should serve 36 months in prison after pleading guilty to violating laws against money laundering. The prosecutors have stated that an above-guideline sentence of 36 months is warranted given the magnitude of Zhao’s willful violation of U.S. law and its consequences.
The filing also added that the agreed $50 million fine, along with the sentence, is sufficient but not greater than necessary to balance the relevant 18 U.S.C. § 3553(a) factors and achieve the goals of sentencing.
Zhao, the former CEO of Binance, pleaded guilty to violating money laundering requirements in the U.S. and resigned from his position in November 2023. As a result, he faced a $50-million fine directly to him, and Binance received larger penalties.
According to federal sentencing guidelines, Zhao could face a maximum sentence of 18 months in prison, but he has agreed not to appeal against any sentence up to that length. Currently, he is free in the U.S. on a $175 million bond.
Binance Agrees to Pay $4.3 Billion
After admitting to violating U.S. money laundering laws, Zhao and Binance agreed to pay $4.3 billion in fines to the U.S. government to end the criminal case. In exchange, Binance was allowed to continue operating, but it must comply with U.S. laws.
Despite stepping down from Binance, CZ remains involved in the cryptocurrency industry. In March, Zhao announced a new educational project devoted to crypto and blockchain, stressing that the initiative will have “no new tokens.”
On April 24, CZ showcased the logo of his new educational project with a statement. “We wanted the Giggle Academy logo to show youth, fun, positive energy, and growth. We also want to show respect to our ‘Binance heritage,’” CZ wrote.
In March, Zhao revealed a new educational project aimed at crypto and blockchain, highlighting that the initiative will have no new tokens. Named Giggle Academy, the project specifically targets a much younger population, or two- to three-year-olds, according to a CZ post on X on April 18.
