The U.S. Department of Justice (DOJ) announced their intent to pursue a 36 month prison sentence for former Binance CEO Changpeng Zhao. 

Zhao pled guilty in November of 2023 to willful failure to maintain an effective anti-money-laundering program. Zhao ran the organization from 2017 until 2022 and knowingly acted against the U.S. Bank Security Act (BSA) by not implementing an AML and, as a result, processing transactions between U.S. persons and persons in sanctioned jurisdictions. This violated U.S. sanctions. 

In accordance with Zhao’s guilty plea, the both parties agreed for a fine of $50 million to be paid by Zhao. Under federal guidelines with respect to his actions, Zhao’s recommended prison sentence is a maximum of 18 months. 

“Given the magnitude of Zhao’s willful violation of U.S. law and its consequences, an above-Guidelines sentence of 36 months is warranted,” court reports said. “That sentence, together with the agreed $50 million fine, is sufficient but not greater than necessary to balance the relevant 18 U.S.C. § 3553(a) factors and achieve the goals of sentencing.”

This request was made on the argument that “a preponderance of the evidence shows that Zhao knew or believed that at least some funds his company processed were proceeds of unlawful activity.”

Zhao’s sentencing will be announced on April 30.