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.
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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.
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