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The US Department of Justice (DOJ) has requested a 36-month prison sentence and a $50 million fine against Binance founder and former CEO Changpeng Zhao, also known as CZ, in connection with his role in the crypto exchange's violation of federal sanctions. money laundering laws.
In a sentencing memo filed Tuesday evening, DOJ lawyers argued for a significant increase in Zhao's prison term from the 18-month maximum stipulated in his November 2022 plea agreement. Zhao had pleaded guilty of having violated the bank secrecy law, the prosecution and the defense having accepted a fine of 50 million dollars.
The DOJ filing highlights the severity and extent of Zhao's misconduct, saying the recommended sentence would serve as a powerful deterrent to others considering violating U.S. law for financial gain.
“The conviction in this case will send a message not only to Zhao but also to the world,” the filing said, emphasizing the need for a significant punishment to effectively punish Zhao and discourage others from engaging in similar criminal acts.
Zhao's sentencing hearing, originally scheduled for late February, was postponed to April 30 by mutual agreement. Since his first appearance in federal court in Seattle, Washington, last year, he has been unable to return to Dubai, where his partner and some of his children live.
“Zhao has reaped vast rewards for his violation of U.S. law, and the price of that violation must be significant to effectively punish Zhao for his criminal actions and to deter those tempted to build fortunes and business empires by violating the law. American law”, we can read in the document. added.
Binance, the world's largest cryptocurrency exchange, also pleaded guilty to the charges alongside Zhao, agreeing to pay a substantial fine and report to a court-appointed monitor, who has not yet been named .
The DOJ's push for a longer prison term and significant fine underscores the seriousness of the charges against Zhao and Binance, as well as the U.S. government's efforts to enforce federal sanctions and money laundering laws. money within the crypto industry.
The exchange was fined $1.8 billion in criminal fines and ordered to pay restitution of $2.5 billion.
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