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US Prosecutors Demand 36 Months Jail Time for Binance Founder

April 25, 2024
in Technology
US Prosecutors Demand 36 Months Jail Time for Binance Founder
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Binance founder Changpeng Zhao (CZ) could face a potential 36-month prison sentence after pleading guilty to money laundering-related charges in the US.

Prosecutors are pushing for this sentence, citing the severity of Zhao’s violations and their consequences. The jail sentence for the crimes is expected to be pronounced on April 30, 2024.

Binance Founder Faces 36-Month Sentence

The request for jail time comes as part of ongoing legal proceedings in a lawsuit against Binance and its founder. According to the court filings, the proposed 36-month jail sentence, with a $50 million fine, is necessary to address the gravity of the offense. 

Notably, Zhao’s legal troubles began when he admitted to violating US money laundering laws and stepped down from his CEO position at Binance in November 2023. In addition to the hefty fine imposed on him personally, Binance also faced significant penalties as part of the case.

Despite federal sentencing guidelines suggesting a maximum 18-month sentence, Zhao agreed not to appeal any sentence up to that length. Meanwhile, he has been out on bail in the US after pledging a $175 million bond.

Zhao and Binance agreed to pay the US government a staggering $4.3 billion in fines to resolve the criminal charges as part of a settlement. However, Binance was permitted to continue its operations under the condition of adhering to US regulations moving forward.

Meanwhile, CZ still shows interest in matters regarding cryptocurrencies despite having stepped down from his role at Binance. This is evident in his plans to create a new educational venture with a focus on crypto and blockchain, tagged Giggle Academy. He clarified that the plans don’t involve creating a new token.

Giggle Academy aims to educate a much younger audience. According to CZ.’s announcement on X on April 18, it specifically targets two—to three-year-olds.

btw, we moved the goal post a little bit again since a few weeks ago. We are starting at a much earlier age now, 2-3 year olds.

Start at the beginning, instead of somewhere in the “middle”, and hopefully keep growing with our community, for 18 (or more) years…

Initially, our… https://t.co/YnYZ6svhmJ

— CZ 🔶 BNB (@cz_binance) April 18, 2024

As a show of his commitment to the project, CZ unveiled the logo for Giggle Academy on April 24. According to him, Giggle’s logo symbolizes youthfulness, fun, positive vibes, and growth. He also noted the importance of honoring Binance’s legacy in this new venture.

Chainalysis’ Report on Crypto Money Laundering

Meanwhile, the crypto space appears to be experiencing fewer illicit activities, particularly in 2023. According to Chainalysis’s yearly report on crypto money laundering, illegal cryptocurrency activities have significantly decreased since last year.

This decline was attributed partly to a decrease in cryptocurrency trading volume and partly to sophisticated threat actors’ development of evasion techniques. 

Notably, the report stated that $22.2 billion was laundered through cryptocurrency in 2023, a decrease from $31.5 billion the previous year.

This drop exceeded the decline in transaction volumes, indicating that factors other than the overall market downturn likely played a role in reducing illicit activities.

The data suggests that only around 1% of all money laundering involves cryptocurrency. Deloitte also highlighted in a June 2023 report that the total value of illicit funds laundered annually is approximately $2 trillion.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TechReport – https://techreport.com/crypto-news/us-prosecutors-demand-36-months-jail-time-for-binance-founder/

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