Changpeng Zhao, the creator of Binance, is facing 36 months in prison, according to US prosecutors, who point to the "magnitude of Zhao's willful violation of U.S. law and its consequences."

After admitting guilt to breaking money laundering laws, Binance founder and former CEO Changpeng Zhao may face a sentence of 36 months in prison.

According to a recent court filing from U.S. prosecutors, this punishment would serve as "adequate deterrence to Zhao and to others who may also be tempted to put profits above compliance with U.S. laws."

In a calculated plan to expand Binance as soon as possible and subsequently keep its hegemony as the biggest cryptocurrency exchange, Zhao committed grave crimes. His offences call for a significant prison sentence.

American prosecutors

Additionally, prosecutors claim that Zhao's actions were part of a calculated effort to rapidly expand Binance’s operations and maintain its position as the leading cryptocurrency exchange.

According to U.S. authorities, Binance’s former head 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.”

Zhao had previously entered a guilty plea to charges of violating the Bank Secrecy Act in November 2023.

Although he is currently out on a $175 million release bond in the U.S., his sentencing hearing is still scheduled for Apr. 30. A U.S. judge earlier denied Zhao’s request to travel to Dubai, citing concerns about his considerable wealth posing a significant flight risk.