Yahoo Finance Binance founder Changpeng Zhao faces sentencing on money laundering charges
April 30 (UPI) -- Binance founder Changpeng Zhao is set to be sentenced on money laundering charges in the United States on Tuesday.
In a plea deal last November Zhao, 47, admitted to a conspiracy charge and violating the International Emergency Economic Powers Act while resigning as head of the world's largest cryptocurrency exchange. He is also facing a $50 million fine.
Prosecutors are asking the Seattle-based federal court for twice the maximum recommended under federal guidelines because they believe a 36-month sentence would reflect the gravity of Zhao's crimes, where he purposely flouted U.S. law as essentially a business model to grow Binance.
Authorities said that Binance, under Zhao's leadership, ignored more than 100,000 suspicious transactions instead of reporting them by law. Some of the transactions included terrorist groups like Hamas, al-Qaida and ISIS, providing a haven for their financing.
"These exceptional financial penalties which directly resulted from Zhao's conduct demonstrate the nature and seriousness of Zhao's offense," the prosecutor's sentencing memo said. "Those penalties are tied directly to the profits Binance earned and vast transactions it processed, reflecting the extraordinary scope of the scheme."
Binance grew into a financial giant while dodging U.S. law, collecting more than $65 billion in assets before Zhao was forced to leave in November. Binance has continued to skyrocket in Zhao's absence, with its assets exploding to $122 billion recently with crypto prices rising.
