The founder of Binance, the world’s largest cryptocurrency exchange, Changpeng Zhao, may face a 36-month prison sentence as per United States prosecutors.
After admitting to violating money laundering laws, Zhao’s sentencing is scheduled for April 30 in Seattle, according to Reuters.
Last November, Zhao resigned as Binance’s chief following his acknowledgment of the violations, leading to the exchange agreeing to a penalty of $4.32 billion.
Prosecutors argue that due to the severity of Zhao’s deliberate breach of US laws and its repercussions, an extended sentence of 36 months is justified.
Reuters notes that federal guidelines cap Zhao’s potential prison term at 18 months, a duration that Zhao had agreed not to contest.
Having been out on a $175-million bond in the US, Zhao’s case involves allegations that Binance neglected to report over 100,000 suspicious transactions involving terrorist organizations like Hamas, al Qaeda, and ISIS.
Authorities also accused Binance of facilitating the trade of child exploitation materials and being a major recipient of ransomware earnings.
Popularly known as CZ, Zhao agreed to a $50 million settlement and to distance himself from Binance, which he founded back in 2017.
Binance’s penalties include a $1.8 billion criminal fine and a $2.51 billion restitution payment.
Furthermore, the cryptocurrency exchange is entangled in legal issues in Nigeria.