Former Binance CEO Faces 36-Month Prison Sentence

0 0
Read Time:1 Minute

US Department of Justice Recommends Prison Time and Fine for Former Binance CEO

The US Department of Justice has recommended a 36-month prison sentence alongside a $50 million fine for the former CEO of Binance, Changpeng Zhao. In response, Zhao’s legal team contends that his incarceration would be unprecedented, citing no prior instances of imprisonment in similar cases. Instead, they proposed an alternative of probation, potentially with home confinement at his residence in Abu Dhabi. Zhao is currently free on bail in the United States, and his sentencing is slated for April 30.

Reasoning Behind the DOJ’s Recommendation

Zhao initially faced a potential 18-month prison term as per his plea deal. However, the DOJ contended in its April 23 filing that the extent of Zhao’s wrongdoing was significant, warranting a harsher penalty. The authorities emphasized that Zhao and Binance deliberately targeted US users as part of their expansion strategy while disregarding local regulations. The prosecutors asserted that Zhao’s actions were intentional, driven by a calculated business decision to flout US laws in pursuit of growth and personal gain.

Furthermore, the DOJ highlighted Zhao’s negligence in implementing adequate anti-money laundering measures on the Binance platform, enabling illicit funds to flow unchecked. The DOJ argued, “[Zhao] chose not to comply with fundamental U.S. anti-money-laundering (AML) requirements; he chose not to implement and maintain an effective know-your-customer (KYC) system, which prevented effective transaction monitoring and allowed suspicious and criminal users to transact through Binance.” Consequently, the DOJ argued that his sentencing should be used to send a message to the world and deter others from building “fortunes and business empires by breaking US laws.” The DOJ concluded, “A three-year custodial sentence, together with the agreed $50 million fine, would achieve specific and general deterrence.”

See also
Walgreens CEO on Beating Amazon with Human Experience

Zhao’s Response

Zhao’s lawyers claimed the embattled founder “deeply regrets his offense, and he has shown exceptional acceptance of responsibility and remediation.” The lawyers noted, “[Zhao] is a first-time, non-violent offender who committed an offense with no intention to harm anyone. He presents no risk of recidivism. He has appeared in this country voluntarily to accept responsibility.” Due to this, the legal team urged the court to sentence him to probation in line with precedent.

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %