Ex-Binance CEO faces 3-years prison and millions in fines

Changpeng Zhao, the ex-chief executive officer of cryptocurrency exchange Binance, is facing a potential 36-month prison sentence and a US$50 million fine.

His sentencing, recommended by the U.S. Department of Justice, is set for April 30.

Zhao pleaded guilty to anti-money laundering (AML) law violations last November.

Prosecutors are pushing for a harsher sentence than federal guidelines typically suggest, due to Zhao’s “willful failure” to establish a comprehensive AML program at Binance, according to court documents.

The exchange’s practices allegedly facilitated various illegal activities, including transactions that obscured the origins of funds and violated U.S. sanctions.

In February, Binance agreed to pay US$4.3 billion in fines and compensation.

Despite resigning as CEO, Zhao remains the majority owner of Binance and continues to be a prominent figure in the crypto world, recently launching an educational initiative for children.