Former CEO and founder of Binance, Changpeng “CZ” Zhao, could face a significant 36 months prison sentence as U.S. authorities finalize their decision on April 30. Zhao pleaded guilty to breaching U.S. money laundering regulations in November 2023.
Due to the enormity of Zhao’s deliberate violation and its impact, the prosecution proposed a 36-month sentence, which is over the guideline of the Federal Sentencing Guidelines. The $50 million fine, coupled with the stipulated jail time, strikes a balance between the severity of U.S. law breach and the aim of punishment,” the prosecutors stated in the court filing.
In November 2023, Zhao admitted breach of money laundering laws and consequently stepped down as Binance’s CEO. This was followed by a direct $50 million levy levied on him, coupled with more substantial charges against Binance. While Zhao continues to enjoy freedom on a $175-million bond, he has complied to not appeal against a potential 18-month max sentence as per federal sentencing guidelines.
Following Zhao’s admittance of his felony, Binance was able to settle criminal charges by paying a grand $4.3 billion fine but was permitted to carry on operating if it strictly adhered to U.S. regulations. Though Zhao has stepped down from Binance, he continues to remain actively involved in crypto activities. In March, Zhao announced an inventive educational project known as Giggle Academy, a move targeted at younger generation, and particularly two-to-three-year-olds.