US prosecutors have proposed a sentence of 36 months
in prison for Binance’s Former CEO, Changpeng Zhao. According to a report by
CNBC, the prosecutors argued that the sentence, which is double the advisory
guidelines, reflects the seriousness of the charges against Zhao.
The recommendation, outlined in a sentencing
memorandum filed with the Western District Court of Washington, highlights the
severity of the accusations against Zhao, who stepped down from his position
last November following a plea deal with the US Department of Justice.
US Prosecutors’ Charges Against Zhao
US prosecutors said a 36-month custodial sentence
is necessary to underscore the seriousness of the charges against Zhao, which
include wilful failure to implement anti-money laundering measures as mandated
by the Bank Secrecy Act.
The memorandum emphasizes Zhao’s alleged role in
allowing Binance to process transactions involving proceeds of unlawful
activity, pointing to transactions between Americans and individuals in
sanctions jurisdictions.
The case against Zhao comes amidst a backdrop of legal
challenges for Binance, with the exchange facing lawsuits from both the US
Securities and Exchange Commission (SEC) and the Commodity Futures Trading
Commission (CFTC).
Allegations include mishandling customer assets and
operating an illegal, unregistered exchange in the US. The country has also
ordered Binance to pay hefty fines, with Zhao agreeing to a $50 million penalty
as part of the plea deal.
Despite Zhao’s alleged confidence in evading
consequences, prosecutors stress that his apprehension marks a turning point.
Changpeng Zhao, who stepped down from his role as CEO last year, has not
publicly commented on the recent developments. His official sentencing is
scheduled for April 30.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
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