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Binance founder Changpeng Zhao faces a possible 36 months jail time for violating U.S. laws

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on Apr 24, 2024
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  • Zhao, also known as CZ, will face his sentence in Seattle on 30 April.
  • He has been out on a $ 175 million bond in the U.S. while awaiting his sentence.
  • Binancec faced a penalty of $1.81-billion criminal fine and $2.51 billion in restitution.

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Yesterday, U.S. prosecutors stated that Binance’s founder Changpeng Zhao should serve a prison sentence of 36 months for pleading guilty to violating laws against money laundering.

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Changpeng Zhao’s sentencing

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Zhao, also known as CZ, will face his sentence in Seattle on 30 April. He resigned as Binance’s chief in November 2023 after admission of violations by both himself and the exchange. The company agreed to pay a penalty of $4.32 billion for this.

As per federal sentencing guidelines, Zhao faces a maximum prison sentence of 18 months. He has been out on a $ 175 million bond in the U.S. while awaiting his sentence.

Binance’s crimes

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According to the U.S. authorities, Binance has neglected to report over 100,000 suspicious transactions involving terrorist groups like ISIS, Hamas and al Qaeda. Prosecutors also claim that Binance helped with the sale of child sexual abuse materials and received a huge portion of ransomware profits.

Zhao has agreed to pay a $50 million fine and discontinue his involvement with the company, which he established in 2017.

Binancec faced a penalty of $1.81-billion criminal fine and $2.51 billion in restitution.

Even after resigning from Binance, Zhao plans to remain involved in the crypto market. In the previous month, Zhao declared a new educational initiative, the Giggle Academy, focusing on cryptocurrency and blockchain, and emphasised that this project will not have any “new tokens”.

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