Key Takeaways:
- Changpeng Zhao’s Sentencing: Binance founder “CZ” is set to be sentenced on April 30 for money laundering, with U.S. prosecutors recommending a 36-month prison term plus a $50 million fine, highlighting his deliberate violation of U.S. regulations.
- Binance’s Legal Settlement: As part of a broader resolution, Binance agreed to pay $4.3 billion in fines for failing to meet U.S. anti-money laundering requirements, a settlement that allows continued operation under U.S. compliance.
- CZ’s Ongoing Ventures: Despite stepping down from Binance, CZ remains active in the crypto world, launching Giggle Academy, an educational project focused on teaching crypto and blockchain to young learners without creating new tokens.
Binance founder and former CEO, Changpeng Zhao, popularly known as “CZ,” is slated to receive his sentence on April 30, following his guilty plea to charges of money laundering in November 2023.
As the sentencing date approaches, US prosecutors have submitted a request for Zhao to be incarcerated for 36 months.
US DOJ seeks 36 months’ imprisonment for Binance founder Changpeng Zhao https://t.co/oXFWgBHzOw
— The Block (@TheBlock__) April 24, 2024
This recommendation was made in a recent court filing to the US District Court for the Western District of Washington, emphasizing that Zhao’s deliberate breach of US anti-money laundering regulations justifies an above-guideline sentence.
“Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-guideline sentence of 36 months is warranted,” the prosecutors stated in the court document.
They added that this term, coupled with a substantial $50 million fine already agreed upon, would adequately fulfill the sentencing objectives outlined under 18 U.S.C. § 3553(a).
Breaking: Binance Founder Changpeng Zhao Likely To Face 36 Months In Prison pic.twitter.com/wg9U1rhRmD
— Pushpendra Singh (@pushpendrakum) April 24, 2024
Zhao, who relinquished his role as CEO of Binance in November 2023, pleaded guilty to failing to meet the U.S. money laundering requirements.
This guilty plea was part of a broader resolution that also saw Binance agreeing to a staggering $4.3 billion in fines to settle the criminal charges, allowing the company to continue its operations under US regulatory compliance.
In 2022, Zhao participated in the Viva Technology conference in Paris.
💥BREAKING: US seeks 36 months jail for Binance founder CZ pic.twitter.com/6yrhnsf9PJ
— Crypto Rover (@rovercrc) April 24, 2024
Despite stepping down from his executive role, he remains an active figure in the crypto sphere. Recently, he announced a new educational endeavor named Giggle Academy, aimed at introducing crypto and blockchain concepts to very young learners.
On April 18, Zhao shared details about this initiative on the social media platform X, emphasizing that it would involve “no new tokens” and would focus on instilling a sense of fun and positive energy while honoring Binance’s legacy.
On April 24, he unveiled the logo for Giggle Academy, reflecting the youthful and dynamic spirit of the initiative.
US seeks 36 months' jail for Binance founder Zhao https://t.co/eLPcPLDxXB pic.twitter.com/XF8OGqt5eU
— Reuters Tech News (@ReutersTech) April 24, 2024
This case unfolds as Zhao continues to shape his ongoing contributions to the cryptocurrency industry, despite the legal challenges and his recent shift away from corporate leadership.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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