Prosecutors in the United States in a recent court filing, have suggested a jail term for the founder and former CEO of Binance, Changpeng Zhao. The prosecutors made the request as authorities in the U.S. are gearing up to sentence the former CEO.
In the filing to the U.S. District Court for the Western District of Washington on April 23, the prosecuting attorneys emphasized the degree of Changpeng Zhao’s offense. More so, the prosecutors stated that the founder of Binance should serve 36 months in prison after admitting that he violated money laundering laws.Â
Furthermore, the prosecutors argued that the jail term and the agreed $50 million fine would be enough to achieve the goal of sentencing. Recall that in November 2023, Changpeng Zhao pleaded guilty to money laundering charges which compelled him to relinquish his position as the CEO of the world’s largest cryptocurrency exchange.
Insight Into the Money Laundering Case of Changpeng Zhao
Meanwhile, the former CEO reached an agreement with the U.S. authorities to drop the criminal case. In the agreement, Changpeng Zhao agreed to pay $4.3 billion in fines to end the case. After reaching the agreement, Binance continued its operations in the United States with a consensus to comply with local regulatory standards.
However, the former Binance boss is expected to receive a maximum sentence of 18 months according to federal sentencing guidelines. On the flip side, reports indicated that Changpeng Zhao has no intention to appeal against the sentencing that is expected to surface by April 30. Presently, the former CEO has been free in the U.S. on a $175 million bond.
Upon his resignation, Richard Teng replaced Changpeng Zhao as the CEO of the exchange. Following his emergence, Richard Teng faced a herculean task of stopping the mass exodus of users from the exchange due to the controversies trailing it.
The new CEO has managed to curb the impact of Changpeng Zhao’s money laundering charges on the exchange’s reputation. So far, Richard Teng has ensured that Binance retains its position as the world’s largest cryptocurrency exchange by trading volume. According to CoinMarketcap, Binance has more than $133 billion worth of users’ assets.Â
After stepping down as the CEO of Binance, Changpeng Zhao remains an active figure in the cryptocurrency landscape. Last month, the former Binance boss launched an educational project; Giggle Academy on cryptocurrency and blockchain.