US DOJ seeks 36 months’ imprisonment for Binance founder Changpeng Zhao

Companies • April 24, 2024, 2:15AM EDT

Published 1 minute earlier on

UPDATED: April 24, 2024, 2:20AM EDT

Quick Take

U.S. prosecutors are seeking 36 months of imprisonment for Changpeng Zhao, founder and former chief executive of Binance.
In November, Zhao pleaded guilty in the U.S. to anti-money laundering and sanctions violations.

U.S. prosecutors are seeking 36 months of imprisonment for Changpeng Zhao, founder and former chief executive of Binance, according to a Tuesday filing.

“Zhao’s willful violation of U.S. law was no accident or oversight,” the Department of Justice said in the filing. “He made a business decision that violating U.S. law was the best way to attract users, build his company, and line his pockets.”

“The United States recommends that the Court impose an above-Guidelines sentence of 36 months of imprisonment,” the DOJ added.

In November, Zhao pleaded guilty in the U.S. to anti-money laundering and sanctions violations, and agreed to pay a $50 million fine. He stepped down from his chief executive post. Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history.

While Zhao’s sentencing is scheduled for April 30, the former Binance CEO remains free on bail after securing his release with a $175 million bond. A judge previously denied his request to travel to Dubai.

Binance had appointed Richard Teng as its new CEO after Zhao’s departure.

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About Authors

Timmy Shen is an Asia editor for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance, entertainment business and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.

Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.