Link copied 
In a stern move reflecting the severity of financial crimes, U.S. prosecutors have recommended a 36-month prison sentence for Changpeng Zhao, the former CEO of cryptocurrency giant Binance, for aiding in money laundering activities.
Prosecutors Push for Maximum Penalty, Citing Zhao's Deliberate Non-Compliance and Binance's Regulatory Breaches
In a recent report by CNBC, the memorandum filed with the court for the western district of Washington suggests that Zhao should serve a longer sentence than proposed by advisory standards to "reflect the gravity of his crimes."
According to advisory recommendations, Zhao's sentence would range from 12 to 18 months in prison.
“A custodial sentence of 36 months—twice the high end of the Guidelines range—would reflect the seriousness of the offense, promote respect for law, afford adequate deterrence, and be sufficient but not greater than necessary to achieve the goals of sentencing,” U.S. prosecutors said.
Zhao is accused of willfully failing to implement an effective anti-money laundering program as required by the Bank Secrecy Act and allowing Binance to process transactions involving the proceeds of illegal activity, including transactions between Americans and individuals in sanctioned jurisdictions.
Binance has been sued separately by the United States. The Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating the alleged mishandling of customer assets and the operation of an unlawful, unregistered exchange in the United States.
The United States has separately accused Binance and Zhao of violating the U.S. Bank Secrecy Act and Iran sanctions. Binance was required to pay $4.3 billion in fines and forfeiture, and Zhao has agreed to pay a $50 million fine.
After receiving this plea, Zhao resigned as CEO of Binance in November of last year and was replaced by Richard Teng, the former chief of the Abu Dhabi markets regulator.
Zhao was not immediately available for comment when approached via the social networking platform X. Binance has yet to respond to a request for comment from CNBC.
Zhao Faces Harsh Sentencing for 'Wild West' Operations and Defiance of U.S. Laws
According to prosecutors, Zhao broke US law on an "unprecedented scale," and he showed a "deliberate disregard" for Binance's legal responsibilities.
As per the memorandum dated April 23, prosecutors claim that Binance operated on a "Wild West" basis while under Zhao's authority.
“Zhao bet that he would not get caught and that if he did, the consequences would not be as serious as the crime. But Zhao was caught, and now the Court will decide what price Zhao should pay for his crimes,” the memorandum stated.
Zhao's official sentencing is scheduled for April 30.
Photo: Microsoft Bing
