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Binance founder CZ deserves three years behind bars, say prosecutors

Published 24/04/2024, 11:58
©  Reuters Binance founder CZ deserves three years behind bars, say prosecutors
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Proactive Investors - US prosecutors are calling for a three-year jail term for Changpeng ‘CZ’ Zhao, the founder and former boss of the world’s largest cryptocurrency exchange Binance.

"Given the magnitude of Zhao's willful violation of U.S. law and its consequences, an above-guidelines sentence of 36 months is warranted," Reuters reported US prosecutors as telling the US district court in Washington.

CZ, who is on a $175 million bail, has been accused of failing to report illegal money transfers and money laundering conducted over Binance.

Terrorist organisations including Al Qaeda and Islamic State have allegedly used the platform.

Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has previously accused Binance of engaging in securities fraud and “an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law".

“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk – all in an effort to maximize their own profits,” said Gurbir Grewal, Director of the SEC’s Division of Enforcement.

CZ pleaded guilty to breaking US anti-money laundering rules in November 2023. He agreed to pay a $50 million fine and stepped down as chief executive of Binance.

"Today, I stepped down as CEO of Binance," CZ said at the time. "Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself."

His sentencing is due on 30 April.

Read more on Proactive Investors UK

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