A federal court has postponed the criminal sentencing hearing of former Binance CEO Zhao Changpeng to April 30. Zhao had previously pleaded guilty to failing to provide an effective anti-money laundering program at the cryptocurrency exchange.
Sentencing was originally scheduled for February 23, and Zhao was to be sentenced to up to 18 months in prison under the original recommendation and stipulation. Notice of the rescheduled hearing was filed yesterday in federal court in Seattle. Prosecutors said the court could require a sentence of up to 10 years, as allowed by law.
The defense argues that Mr. Zhao faces a "short" sentence and has no incentive to hide. "Indeed, the maximum term set forth in the guidelines is 18 months, and the United States may seek a sentence of up to 10 years, which is the maximum term allowed by law,'' the statement said.
Zhao stepped down as head of #Binance last November as part of a settlement with global regulators over allegations of mismanagement of financial crimes over the years. Binance is now headed by Richard Teng, who previously ran its regional markets division.
Zhao is free on $175 million bail under a court order barring him from entering the U. S. pending sentencing. His lawyers will try to avoid jail time by pushing for alternative sentencing options such as probation or home confinement. However, given the scale of Binance's money laundering offenses, a lengthy prison sentence remains highly likely.
In recent years, US authorities have actively prosecuted #cryptocurrency companies for facilitating illegal transactions and evading sanctions. The collapse of FTX last year as a result of a fraud investigation further intensified regulators' focus on the digital asset sector. The fact that Binance has agreed to pay out more than $4 billion suggests that authorities are intent on holding cryptocurrency founders accountable.
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