{"id":414471,"date":"2024-04-24T09:59:23","date_gmt":"2024-04-24T08:59:23","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=414471"},"modified":"2024-04-24T10:00:01","modified_gmt":"2024-04-24T09:00:01","slug":"us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao\/","title":{"rendered":"US DOJ seeks 36-month sentence and $50 million fine for ex-Binance CEO Changpeng Zhao"},"content":{"rendered":"<p>The US Department of Justice has recommended a 36-month prison sentence alongside a $50 million fine for the former CEO of <a href=\"https:\/\/cryptoslate.com\/companies\/binance\/\">Binance<\/a>, <a href=\"https:\/\/cryptoslate.com\/people\/changpeng-zhao\/\">Changpeng Zhao<\/a>.<\/p>\n<p>In response, Zhao's legal team contends that his incarceration would be unprecedented, citing no prior instances of imprisonment in similar cases. Instead, they proposed an alternative of probation, potentially with home confinement at his residence in Abu Dhabi.<\/p>\n<p>Zhao is currently free on <a href=\"https:\/\/cryptoslate.com\/us-court-tightens-grip-on-changpeng-zhao-with-travel-and-passport-restrictions\/\">bail in the United States<\/a>, and his sentencing is <a href=\"https:\/\/cryptoslate.com\/binance-founder-changpeng-zhao-sentencing-rescheduled-for-april-30\/\">slated for April 30<\/a>.<\/p>\n<p><span style=\"color: #333333; font-size: 22px; font-weight: bold;\">Why does the DOJ want 36 months for Zhao?<\/span><\/p>\n<p>Zhao initially faced a potential 18-month prison term as per his plea deal. However, the DOJ contended in its April 23 filing that the extent of Zhao's wrongdoing was significant, warranting a harsher penalty.<\/p>\n<p>The authorities emphasized that Zhao and Binance deliberately targeted US users as part of their expansion strategy while disregarding local regulations. The prosecutors asserted that Zhao's actions were intentional, driven by a calculated business decision to flout US laws in pursuit of growth and personal gain.<\/p>\n<p>Furthermore, the DOJ highlighted Zhao's negligence in implementing adequate anti-money laundering measures on the Binance platform, enabling illicit funds to flow unchecked.<\/p>\n<p>DOJ argued:<\/p>\n<blockquote><p>&#8220;[Zhao] chose not to comply with fundamental U.S. anti-money-laundering (AML) requirements; he chose not to implement and maintain an effective know-your-customer (KYC) system, which prevented effective transaction monitoring and allowed suspicious and criminal users to transact through Binance.&#8221;<\/p><\/blockquote>\n<p>Consequently, the DOJ argued that his sentencing should be used to send a message to the world and deter others from building &#8220;fortunes and business empires by breaking US laws.&#8221;<\/p>\n<blockquote><p>&#8220;A three-year custodial sentence, together with the agreed $50 million fine, would achieve specific and general deterrence,&#8221; DOJ concluded.<\/p><\/blockquote>\n<h2>Zhao's response<\/h2>\n<p>Zhao's lawyers claimed the embattled founder &#8220;deeply regrets his offense, and he has shown exceptional acceptance of responsibility and remediation.&#8221;<\/p>\n<p>The lawyers <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.wawd.328570\/gov.uscourts.wawd.328570.81.0.pdf\">noted<\/a>:<\/p>\n<blockquote><p>&#8220;[Zhao] is a first-time, non-violent offender who committed an offense with no intention to harm anyone. He presents no risk of recidivism. He has appeared in this country voluntarily to accept responsibility.&#8221;<\/p><\/blockquote>\n<p>Due to this, the legal team urged the court to sentence him to probation in line with precedent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Department of Justice has recommended a 36-month prison sentence alongside a $50 million fine for the former CEO of Binance, Changpeng Zhao. In response, Zhao&#8217;s legal team contends that his incarceration would be unprecedented, citing no prior instances of imprisonment in similar cases. Instead, they proposed an alternative of probation, potentially with home [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":414482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,60793],"tags":[77118,79358],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US DOJ seeks 36-month sentence and $50 million fine for ex-Binance CEO Changpeng Zhao<\/title>\n<meta name=\"description\" content=\"Zhao argued that he is a first-time offender and has cooperated acting in good faith regarding the matter.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US DOJ seeks 36-month sentence and $50 million fine for ex-Binance CEO Changpeng Zhao\" \/>\n<meta property=\"og:description\" content=\"Zhao argued that he is a first-time offender and has cooperated acting in good faith regarding the matter.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-24T08:59:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-24T09:00:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/04\/cz-binance-prison.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/us-doj-seeks-36-month-sentence-and-50-million-fine-for-binance-ceo-changpeng-zhao\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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