Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Binance Founder Changpeng Zhao Apologizes, DOJ Pushes For 3-Year Sentence

Published 24/04/2024, 12:49
© Reuters.  Binance Founder Changpeng Zhao Apologizes, DOJ Pushes For 3-Year Sentence

Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Changpeng Zhao, the founder and former CEO of Binance (CRYPTO: BNB), is facing a potential prison sentence of three years after the U.S. Department of Justice (DOJ) argued for his incarceration in a recent sentencing memo.

DOJ Seeks Imprisonment, Citing National Security Concerns

The DOJ is pushing for a harsher sentence than the 18 months stipulated in Zhao’s plea agreement, citing the “massive scope and ramifications” of his misconduct, Coindesk reported.

They argue that Binance, under Zhao’s leadership, facilitated transactions involving illicit activities like ransomware attacks and darknet markets.

This, the DOJ claims, posed a threat to U.S. national security.

Also Read: Mt. Gox Creditors See Repayment Light At The End Of The Tunnel

Defense Argues for Probation, Downplays Knowledge of Violations

Zhao’s defense team countered these accusations, stating that he lacked knowledge of specific illegal transactions and that Binance wasn’t explicitly prohibited from having users from sanctioned countries on its platform.

They further claim that the sanctions violations were “microscopically tiny” compared to Binance’s overall trading volume.

Zhao apologized for his “poor decisions,” taking responsibility for his actions as he faces sentencing on April 30th. In a letter to the judge overseeing his case, he admitted to failing to establish necessary compliance controls at Binance and expressed his desire to support biotech startups and youth in the future, Coindesk reported.

This ongoing case highlights the evolving regulatory landscape surrounding cryptocurrencies, particularly regarding money laundering and national security concerns.

Stay Informed At Benzinga’s Future Of Digital Assets Event

The rapid development of the digital asset space necessitates staying informed about regulatory changes and potential risks.

The Benzinga Future of Digital Assets event, happening on Nov. 19 offers a valuable opportunity to gain insights from industry experts.

Read Next: Crypto Lobby Group Sues SEC Over New Dealer Rule

Image: Shutterstock

© 2024 Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.