The founder of Binance should be imprisoned for 36 months, US prosecutors said
As US authorities prepare to sentence Binance founder Changpeng “CZ” Zhao on April 30, prosecutors have asked for jail time for the former CEO.
US prosecutors said in a court filing on April 23 that Binance founder Zhao should serve 36 months in prison.
“Zhao should be sentenced to 36 months in prison, given the magnitude and consequences of his willful violation of US law,” prosecutors wrote in a filing in the US District Court for the Western District of Washington.
“This penalty is sufficient, but not excessive, to balance the relevant 18 USC § 3553(a) factors with the agreed upon penalty of $50 million,” the filing added.
Zhao pleaded guilty to violating anti-money laundering standards in the US and stepped down as CEO of Binance in November 2023. Zhao subsequently faced a $50 million fine served directly against him, in addition to Binance's larger fines.
According to online reports, federal sentencing guidelines call for 18 months in prison for Zhao, who has agreed not to appeal in any form until then. He was released on a $175 million bond in the US.
After CZ admitted to violating US money laundering laws, he and his firm, Binns, agreed to pay a $4.3 billion fine to the US government to end the criminal case. In return, Binance was allowed to continue operating while complying with US laws.
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Despite being removed from Binance, CZ is involved in the cryptocurrency industry. In March, Zhao announced a new educational project dedicated to crypto and blockchain, an initiative he stressed would have “no new tokens.”
According to CZ's post on X on April 18, the project, called Jiggle Academy, is specifically aimed at the very young population, or children between the ages of two and three.
On April 24, CZ unveiled the logo of its new educational project. “We want the Giggle Academy logo to represent youth, fun, positive energy and growth. We also want to show respect to the ‘Binance Heritage', CZ wrote.
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