U.S. Prosecutors Reveal Former Binance CEO’s Recommended Sentence

April 26, 2024 11:50 pm Comments

U.S. prosecutors have revealed their recommended sentence for former Binance CEO Changpeng Zhao.

Their latest filing revealed that they want Zhao to spend three years behind bars and pay a $50 million penalty as compensation for his alleged violation of existing money laundering laws.

This confirms earlier speculation that U.S. officials were, in fact, attempting to jail Zhao.

The embattled former CEO filed several requests to return to the UAE ahead of his sentencing, yet each motion was denied by the courts.

At least one of his requests also included a lucrative offer regarding a financial surety that he would return. Here are the latest developments in the ongoing trial of the former Binance CEO:

CoinDesk featured this response to the sentencing request from Zhao’s defense team:

Hours later, Zhao’s defense team filed its own sentencing memo, saying “no defendant in a remotely similar BSA case has ever been sentenced to incarceration.”

Instead, they suggested he be sentenced to probation, which could include home confinement at his home in Abu Dhabi.

Former SEC Chief John Reed Stark provided a portion of the prosecution’s filing: “Zhao violated U.S. law on an unprecedented scale.

He led a massive financial institution that, as of 2022, processed trillions of dollars in cryptocurrency trades per year and massively profited from the U.S. financial system, U.S. businesses, and U.S. customers — all without playing by U.S. rules.

He ran Binance with deliberate disregard for the company’s legal responsibilities and for its capacity to cause significant harm, and because of his conduct, Binance processed millions of dollars of unlawful proceeds…

Zhao’s sentence should reflect the gravity of his crimes. Financial institutions are the first line of defense for the U.S. financial system.”

Coin Edition added:

Changpeng Zhao, the former CEO of Binance, wrote a letter to the U.S. Judge from the Western District of Washington, Richard A. Jones, conveying apologies for his conduct ahead of his sentence. The judge also received about 161 support letters from Zhao’s family, friends, and acquaintances seeking leniency.

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