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Binance Founder CZ Faces 36-Month Jail Term as U.S. Prosecutors Urge Sentencing

On April 30, the sentencing of Binance founder Changpeng “CZ” Zhao looms as U.S. authorities gear up. Prosecutors, urging a jail term, advocate for a 36-month sentence following Zhao’s admission of guilt in violating anti-money laundering laws, as detailed in a court filing on April 23.

“In light of Zhao’s intentional breach of U.S. law and its repercussions, a 36-month sentence surpassing standard guidelines is justified,” stated prosecutors in the submission to the U.S. district court for the Western District of Washington.

They emphasized that this, combined with a $50 million fine, strikes a balance aligned with sentencing objectives under 18 U.S.C. § 3553(a).

Zhao confessed to breaching U.S. money laundering regulations and relinquished his CEO role at Binance in November 2023. Additionally, he incurred a direct $50 million penalty, alongside broader fines imposed on Binance.

Federal guidelines cap Zhao’s potential prison term at 18 months, a limitation he agreed not to contest. He has remained free on a $175 million bond.

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Acknowledging his transgressions, Zhao, along with Binance, consented to a $4.3 billion settlement with the U.S. government to conclude the legal proceedings. This agreement allowed Binance to sustain its operations under U.S. regulatory compliance.

Despite stepping away from Binance, Zhao maintains involvement in the cryptocurrency sector. In March, he unveiled Giggle Academy, an educational initiative focused on crypto and blockchain, emphasizing its exclusion of new tokens.

Geared towards toddlers aged two to three, the project aims to foster early engagement with these technologies.

Recently, Zhao unveiled Giggle Academy’s logo, embodying youth, positivity, and growth while paying homage to Binance’s legacy.

“We wanted the Giggle Academy logo to exude youthfulness, fun, positive vibes, and evolution. It’s also a nod to our roots at Binance,” he expressed on April 24.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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