Changpeng Zhao, founder and CEO of Binance, attends the Viva Technology conference on innovation and startups at the Porte de Versailles exhibition center in Paris on June 16, 2022.
Benoit Tessier | Reuters
U.S. prosecutors are seeking a higher-than-standard sentence of 36 months for the former CEO of cryptocurrency exchange Binance on charges of facilitating money laundering, according to a sentencing memorandum released late Tuesday.
The memorandum, filed in the court for the Western District of Washington, said Zhao should serve a higher sentence that, according to advisory guidelines, should “reflect the seriousness of his crimes.”
According to advisory guidelines, Zhao’s sentence would be between 12 and 18 months in prison.
“A sentence of 36 months’ imprisonment – twice the upper end of the range set out in the guidelines – would reflect the seriousness of the offense, promote respect for the law, provide an appropriate deterrent and be sufficient, but not greater than necessary, to achieve the objectives of the.” To achieve conviction.” That’s what US prosecutors said.
Zhao is accused of willfully failing to implement an effective anti-money laundering program in accordance with the Bank Secrecy Act and effectively allowing Binance to process transactions with proceeds from unlawful activities, including transactions between Americans and individuals in sanctioned areas.
Binance was sued separately by the US Securities and Exchange Commission and the Commodity Futures Trading Commission for allegedly misusing customer assets and operating an illegal, unregistered exchange in the US
The United States, which accused Binance and Zhao each of violating the US Bank Secrecy Act and sanctions against Iran, ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a $50 million fine.
Zhao resigned as Binance CEO in November last year after granting that request and was replaced by former Abu Dhabi market regulator chief Richard Teng.
Zhao was not immediately available for comment when reached via the social media platform
“Unprecedented scale” of financial crime
Prosecutors say Zhao violated U.S. law on an “unprecedented scale” and that he “deliberately disregarded” Binance’s legal responsibilities.
In Tuesday’s memorandum, prosecutors said Binance operated under a “Wild West” model under Zhao’s control.
“Zhao bet that he wouldn’t get caught, and that if he did, the consequences wouldn’t be as serious as the crime,” the memorandum said.
“But Zhao was caught and now the court will decide what price Zhao should pay for his crimes.”
Zhao’s official sentencing is expected to take place on April 30.
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2024-04-24 08:18:29
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