The founder of Binance, Changpeng Zhao, has recently posted bail in the amount of $175 million and is currently residing in the United States. The US authorities have accused him of deliberately violating US laws.
According to a court filing submitted by US prosecutors, Zhao is alleged to have violated anti-money laundering rules (AML) and they are recommending a 36-month jail sentence for him. His sentencing is scheduled for April 30, and based on federal sentencing guidelines, he could face a maximum of 18 months in jail. Zhao and his legal team have reportedly not challenged any hearings up to this point.
The US prosecution argues that a 36-month sentence, which exceeds the guidelines, is warranted due to the severity and impact of Zhao’s intentional violation of US law. They claim that Zhao and Binance deliberately targeted users in the United States as part of their growth plan, despite knowing that it would violate US regulations.
Zhao himself has acknowledged the significance of disregarding US restrictions for Binance’s success and development. The prosecutors cited his statements where he boasted about how following US law would have hindered Binance’s expansion and earnings over the past two years.
The US prosecutors assert that Zhao’s deliberate disregard for US law was not accidental, but a strategic decision driven by his desire to attract consumers, grow his company, and profit personally.
In other crypto news today, it has been highlighted that crypto transaction batching can result in significant savings on gas fees.