US Seeks Three Years In Jail For Binance Founder Changpeng Zhao, Says He Lined His Pockets By Violating The Law

Updated: 24 April 2024

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U.S. prosecutors are seeking a 36-month prison sentence for Binance co-founder Changpeng Zhao, who they say purposefully violated the law to “line his pockets.”

“Zhao’s willful violation of U.S. law was no accident or oversight,” the Department of Justice (DoJ) said in an Apr. 24 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.”

Prosecutors Still Want Changpeng Zhao To Serve Time Despite Multiple Fines

Zhao pleaded guilty to anti-money laundering and sanctions violations in the U.S. last year. In addition to agreeing to pay a $50 million fine, he also stepped down from his chief executive role at the leading crypto exchange for three years.

Meanwhile, Binance agreed to and paid $4.3 billion as part of a corporate settlement, one of the largest settlements of its kind in history.

Prosecutors are still not done with Zhao, whose sentencing is scheduled for Apr. 30. Currently free on bail after securing his release with a $175 million bond, the DoJ are now asking the court to “impose an above-Guidelines sentence of 36 months of imprisonment.”

The Former Binance CEO Is Still The Richest Crypto Billionaire

Zhao’s current legal situation has not hindered his entrepreneurial spirit, as he recently launched Giggle Academy. Through this nonprofit online education platform, he aims to revolutionize the learning process by making it more fun, accessible and free to children worldwide.

The settlement and the bond Zhao paid seem to have had a minimal impact on the former CEO’s wealth as well. Forbes revealed in its Apr. 2 annual ranking that Zhao is still the richest crypto billionaire with a fortune estimated at $33 billion.

The Richest Crypto And Bitcoin Billionaires In The World 2024: https://t.co/T64MhFF8WS #ForbesBillionaires pic.twitter.com/h5K8J5JXRi

— Forbes (@Forbes) April 3, 2024

In second place is Coinbase founder Brian Armstrong. Forbes estimated that he is worth $11.2 billion after the U.S. exchange’s stock price surged 200% over the past year.