Prison term sought for ex-crypto exchange CEO over money laundering.
US prosecutors have demanded a three-year incarceration for Changpeng Zhao, former boss of cryptocurrency titan Binance, following his guilty plea in a money laundering case. In a recent court submission, they argued the magnitude of willful violations that enabled criminal activities like terrorism and child abuse warrants a prison sentence double the guidelines for the repentant Zhao.
The 47-year-old stepped down as CEO in November and admitted lax anti-money laundering compliance in Binance’s formative “Wild West” phase, which saw over Rs 7,500 crore in suspicious transactions go unreported.
Prosecutors allege the “business decision” to skirt domestic lawsmaximised profits and growth for Zhao personally. They contend no equivalent instance saw the offender evade punishment.
Zhao’s advocates, however, highlighted his responsibility acceptance as a first-time offender. Notably, he was slapped with a Rs 3,750 crore penalty and assisted authorities in strengthening later compliance despite “initial failures.”
District Judge Richard Jones will pronounce the sentence on April 30, even as the debate highlights the challenge to regulate disruptive technologies amid evolving global standards. It remains awaited if deterrence would entail the incarceration of an industry pioneer.
