U.S. prosecutors are recommending a 36-month prison sentence for Changpeng Zhao, the founder of Binance, for his willful violation of U.S. laws related to money laundering. The prosecutors believe that this sentence would serve as a deterrent to Zhao and others who may prioritize profits over compliance with the law.

Prosecutors accuse Zhao of engaging in deliberate criminal activities to rapidly expand Binance and maintain its status as the largest cryptocurrency exchange. They claim that Zhao failed to implement an effective know-your-customer (KYC) system, which allowed suspicious and criminal users to conduct transactions on Binance.

In November 2023, Zhao pleaded guilty to violating the Bank Secrecy Act. Although he is currently out on a $175 million bond, his sentencing hearing is scheduled for Apr. 30. A U.S. judge denied Zhao’s request to travel to Dubai due to concerns about his significant wealth posing a flight risk.

This development underscores the importance of compliance with U.S. laws in the cryptocurrency industry. It serves as a warning to others who may be tempted to prioritize profits over legal obligations. Stay informed about the latest news in the cryptocurrency world to make informed decisions about your investments.

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