Binance: platform founder Changpeng Zhao (CZ) risks 3 years in prison

Binance founder Changpeng Zhao will receive his prison sentence next week. And it could be quite long!

We thought the Binance legal case was closed on the United States side. Last year, the world’s number 1 cryptocurrency company pleaded guilty to a number of offenses, leading it to pay a fine of nearly $4.3 billion, while its boss Changpeng Zhao (CZ ) had to resign and accept a number of convictions. But his prison sentence, negotiated with the country’s Justice Department, could be longer than expected.

Prosecutors ask for 3 years

When he decided to plead guilty, CZ expected to potentially do some time in prison. The agreement he made imposed a personal fine of $50 million on him, forced him to leave his position as boss of Binance, and put him under threat of suffering, at most, 18 months of imprisonment.

A duration which is included in the federal sentencing guidelines of his agreement, and which prosecutors ignore. The latter in fact require a heavier sentence. “ Given the extent of Zhao’s willful violation of U.S. law and its consequences, a sentence above the 36-month guideline is warranted » reads the legal document which was submitted to the District Court for the Western District of Washington.

Binance accused of being the interface for illegal activities

According to prosecutors, Binance, under the leadership of CZ, did not report more than 100,000 transactions carried out on its platform and suspected of being linked to terrorist groups. The platform, accused of money laundering, would also have been a place of transit for sums resulting from sales of child pornography and ransomware attacks.

In any case, CZ should not wait long to know the final decision of the court, which must communicate its verdict next Tuesday, April 30. He is currently present in the United States, and free, thanks to a bail of 175 million dollars.

Source : Reuters