- U.S. prosecutors on Tuesday recommended an above-guidance, 36-month sentence for former Binance CEO Changpeng Zhao.
- Zhao should serve a higher sentence than suggested under advisory guidelines to "reflect the gravity of his crimes," prosecutors said.
- Zhao stepped down as Binance's CEO in November last year after reaching a plea deal with the U.S. Department of Justice.
U.S. prosecutors are seeking an above-guidance sentence of 36 months for the former CEO of cryptocurrency exchange Binanceon charges of enabling money laundering, according to a sentencing memorandum out late Tuesday.
The memorandum, which was filed with the court for the western district of Washington, states that Zhao should serve a higher sentence than suggested under advisory guidelines to "reflect the gravity of his crimes."
Under advisory guidelines, Zhao's sentencing would come in at a range of 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 of effectively allowing Binance to process transactions involving proceeds of unlawful activity, including transactions between Americans and individuals in sanctions jurisdictions.
Binance has separately been sued by the U.S.Securities and Exchange Commissionand theCommodity Futures Trading Commissionover the alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S.
The U.S., which separately accuses Binance and Zhao of violating the U.S. Bank Secrecy Act and sanctions on Iran, ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a$50 million fine.
Zhao stepped down as Binance's CEO in November last year after reaching this plea and was replaced by the former Abu Dhabi markets regulator's chief, Richard Teng.
Zhao was not immediately available for comment when contacted via social media platform X. Binance has yet to respond to CNBC's request for comment.
'Unprecedented scale' of financial crime
Prosecutors say Zhao violated U.S. law on an "unprecedented scale," and that he had a "deliberate disregard" for Binance's legal responsibilities.
In the memorandum Tuesday, prosecutors said under Zhao's control, Binance operated on a "Wild West" model.
"Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime," the memorandum stated.
"But Zhao was caught, and now the Court will decide what price Zhao should pay for his crimes."
Zhao's official sentencing is expected to take place April 30.
FAQs
U.S. prosecutors on Tuesday recommended an above-guidance, 36-month sentence for former Binance CEO Changpeng Zhao. Zhao should serve a higher sentence than suggested under advisory guidelines to “reflect the gravity of his crimes,” prosecutors said.
Is Changpeng Zhao rich? ›
Still, Zhao will enter the history books as the richest person ever to do time in US federal lockup since his ownership of Binance — and an estimated $43 billion personal fortune tied to it — remain intact. His wealth is likely to grow even bigger as Binance's business accelerates amid crypto's latest bull run.
What happened to the CEO of Binance? ›
Key Takeaways. Binance founder Changpeng Zhao was sentenced to four months in prison for violations of the Bank Secrecy Act during his time at the crypto exchange. The Department of Justice (DOJ) sought a three-year prison sentence, while CZ's lawyers requested probation instead.
What was Changpeng Zhao charged with? ›
Zhao, 47, pleaded guilty in November to one count of failing to maintain an anti-money-laundering program. Binance agreed to pay $4.3 billion to settle related allegations from the U.S. government.
How much is CZ worth now? ›
Will Binance CEO go to jail? ›
SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.
What companies does Changpeng Zhao own? ›
Changpeng Zhao, who goes by CZ, is the founder and former CEO of Binance, the largest cryptocurrency exchange in the world. The Chinese-Canadian coder cut his teeth building high-frequency trading systems for Wall Street's flash boys. Zhao founded Binance in 2017, raising $15 million through an initial coin offering.
Why was Binance's owner jailed? ›
Changpeng Zhao, the founder of the world's leading cryptocurrency exchange, was sentenced on Tuesday to four months in prison after pleading guilty last year to charges that he failed to maintain an effective anti-money laundering program.
Who is the richest person in Binance? ›
Changpeng Zhao, the founder of cryptocurrency firm Binance, has become the world's richest prisoner after he was sentenced to four months in jail on Tuesday, the Telegraph reported. Mr Zhao was sentenced by a Seattle Court after pleading guilty to violations of US anti-money laundering and sanctions laws last year.
Is Binance owned by China? ›
Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance was initially based in China, then moved to Japan shortly before the Chinese government restricted cryptocurrency companies.
He is currently based in Dubai, United Arab Emirates. Zhao met his wife Yang Weiqing in 1999 and they married in 2003. They have two children. Although still married to Yang, Zhao has been in a "life partner" relationship with his business partner and fellow Binance co-founder, He Yi, since they met in 2014.
Who is the real owner of Binance? ›
Changpeng Zhao, the founder of Binance, has been sentenced to four months in prison for money laundering, unlicensed money transmitting and violations in Seattle, United States (US).
How much was Binance worth? ›
About Binance Coin
The Binance Coin price is $596.11, a change of 0.51% over the past 24 hours as of 4:34 a.m. The recent price action in Binance Coin left the tokens market capitalization at $91.71B. So far this year, Binance Coin has a change of 90.20%.
Who is the richest man on Earth? ›
2022
| No. | Name | Net worth (USD) |
|---|
| 1 | Elon Musk | $219 billion |
| 2 | Jeff Bezos | $177 billion |
| 3 | Bernard Arnault & family | $158 billion |
| 4 | Bill Gates | $129 billion |
6 more rowsBinance founder faces possible three-year jail term over 'wild west' business model. Changpeng Zhao, the founder of the world's largest cryptocurrency exchange, will be sentenced on Tuesday after pleading guilty to money laundering charges, with US prosecutors seeking three years in prison for the tech tycoon.
How did CZ get so rich? ›
How Did CZ Get So Rich? Changpeng Zhao is, as of May 8, 2024, worth $33 billion, according to Forbes. He has made this money partially through crypto trading but mainly as the CEO and founder of Binance, the world's largest cryptocurrency exchange.
How did CZ get rich? ›
How Did CZ Get So Rich? Changpeng Zhao is, as of May 8, 2024, worth $33 billion, according to Forbes. He has made this money partially through crypto trading but mainly as the CEO and founder of Binance, the world's largest cryptocurrency exchange.
Who owns the most Bitcoin? ›
According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
How much money does Jack Ma have now? ›
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