latest developments as Binance chief Zhao prepares to face sentencing in a US court. Get all the details and analysis on our website.
Former Binance chief Changpeng Zhao is set to be sentenced in a US court today over money laundering charges, with federal prosecutors seeking a three-year prison term and a $50 million fine.
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Binance chief Zhao set to face sentence in US court
Zhao – a Canadian national – resigned from his position at the world’s largest cryptocurrency mart platform late last year as part of a deal with US authorities. Binance is well-set to pay a record $4.3 billion to settle charges in February.
Prosecutors speak that Binance failed to prevent transactions by terrorist groups, including the Islamic State, al-Qaeda, and Hamas, due to Zhao’s “business decision” to violate US anti-money laundering laws.
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The defense tribunal opposes that probation is sufficient, citing Zhao’s sense of responsibility and philanthropic record. In a social media post, Zhao disputed his mistakes and took responsibility.
The specimen marks a significant crackdown on the cryptocurrency industry, which has faced intense scrutiny in pursuit of a series of scandals and market collapses. Binance’s new CEO, Richard Teng, claims the visitor is working closely with regulators and has spent hundreds of millions on compliance.
The sentencing will set a precedent for the industry, with the Justice Department seeking a strong message to be sent to Zhao and others. The outcome will be closely watched by the crypto polity and regulators worldwide.
