US DOJ seeks 36 months’ imprisonment for Binance founder Changpeng Zhao

U.S. prosecutors are seeking 36 months of imprisonment for Changpeng Zhao, founder and former chief executive of Binance, according to a Tuesday filing.

“Zhao’s willful violation of U.S. law was no accident or oversight,” the Department of Justice said in the 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.”

“The United States recommends that the Court impose an above-Guidelines sentence of 36 months of imprisonment,” the DOJ added.

Zhao's defense council responded to the DOJ recommendation soon after by filing its own sentencing memo. It requested the court to sentence him to probation. 

"Mr. Zhao has paid massive fines. He directed the Company to plead guilty before this
Court and to resolve related civil charges with three federal agencies," Zhao's defense team wrote. "These factors strongly favor lenience." 

In November, Zhao pleaded guilty in the U.S. to anti-money laundering and sanctions violations, and agreed to pay a $50 million fine. He stepped down from his chief executive post. Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history. 

While Zhao’s sentencing is scheduled for April 30, the former Binance CEO remains free on bail after securing his release with a $175 million bond. A judge previously denied his request to travel to Dubai. 

Binance had appointed Richard Teng as its new CEO after Zhao’s departure.

Added updates to include sentencing memorandum filed on behalf of Zhao.