Breaking News: US Prosecutors Seek 36-Month Jail Term for Binance Founder Changpeng Zhao (CZ)

In a groundbreaking development, Changpeng Zhao, the founder of Binance, the world’s leading cryptocurrency exchange, is under scrutiny for money laundering violations. United States prosecutors are advocating for a significant 36-month prison sentence following Changpeng Zhao’s admission of guilt last November.

The Department of Justice argues that Changpeng Zhao should serve 36 months in prison and pay a $50 million fine for violating US sanctions law. This case marks a significant milestone in the ongoing efforts to regulate the cryptocurrency industry and deter crypto crime.

Changpeng Zhao, commonly known as CZ, stepped down as Binance’s chief last November when he and the exchange admitted to the violations. The firm agreed to a penalty of $4.32 billion. “Given the magnitude of Changpeng Zhao’s willful violation of U.S. law and its consequences, an above-guidelines sentence of 36 months is warranted,” U.S. prosecutors told the U.S. district court for the western district of Washington.

The US Department of Justice recommends a 36-month prison sentence for Changpeng Zhao, the former CEO of Binance, the world’s largest crypto exchange https://t.co/Bp8SwcRIwg

— Bloomberg Crypto (@crypto) April 24, 2024

U.S. authorities have said Binance failed to report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS. Prosecutors said Binance’s platform also supported the sale of child sexual abuse materials and was a recipient of a large portion of ransomware proceeds.

This case serves as a stern warning to the crypto industry, highlighting the importance of adhering to regulations and the severe consequences of non-compliance. The sentencing is expected to take place on April 30, marking a pivotal moment in the history of cryptocurrency regulation.

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