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Troubles are mounting up for the founder of the world’s largest crypto exchange. US prosecutors in the latest court filings demand that <a href="https://news.todayq.com/changpeng-zhao-the-word-crypto-is-misleading-call-it-hard-money/">Changpeng Zhao</a> (CZ) should serve 36 months in prison after pleading guilty to violating laws against money laundering. CZ had stepped down as Binance’s chief last November when he and the exchange admitted to the violations. Is CZ in big trouble? 
As reported the sentencing hearing is scheduled for April 30 in Seattle. However, the exchange had agreed to a penalty of $4.32 billion. This marked one of the largest penalties ever imposed on a cryptocurrency exchange. 
Court filings revealed the US prosecutors stated that CZ told the members of his team to “Better to ask for forgiveness than permission” about Binance’s compliance with US law. It added that Zhao and Binance specifically targeted US users as part of Binance’s growth strategy. He knew that this choice subjected the exchange to US laws. 
It mentioned that for years CZ ran the company in violation of US law until he admitted breaking the law. However, Binance’s founder confessed that it was critical to the company’s success and profitability. It added that Zhao bragged that if Binance compiled with the law ‘it would not be “as big as we are today.” 
A report highlighted that the Federal sentencing guidelines set a maximum sentence of 18 months in prison for Zhao. However, he had agreed not to appeal against any stretch up to that length. Interestingly, he has been free in the US on a $175 million bond.&nbsp; US prosecutors go hard? 
US authorities had alleged that the exchange failed to report over 100,000 suspicious transactions involving designated terrorist groups. The prosecutor further claimed that the platform supported the sale of child sexual abuse materials. To this response, CZ had agreed to pay a $50 million fine and ease involvement with Binance. 
Earlier, Binance’s co-founder He Yi showed her optimism about the exchange’s regulatory standing. At a recent Binance Chinese Meetup held on the sidelines of the Token2049 conference in Dubai, Yi stated that CZ’s current situation in the U.S. is “largely peaceful,” with past regulatory pressures being internally anticipated. 
Meanwhile, the legal proceedings seem to be going against what the executives expected. 
Binance’s Coin, BNB, price saw an uptick as it surged by around 2% in the last 24 hours. BNB is trading at an average price of $608.89, at the press time. It is up by 12% over the last 7 days.

Binance’s CZ to face 3 Years behind bars?

Todayq News

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