2024-04-30 14:06:18
- The founder of Binance is facing a 36-month prison sentence, highlighting illegal activities in the cryptographic space.
- Legal actions against Binance and FTX above raise questions about cryptocurrency adoption.
Among the ongoing legal battles is Changpeng Zhao, the founder of the Irish League binance [BNB]which is at a critical time.
Zhao, who is to be sentenced April 30 in a Seattle court, faces a crucial moment as US prosecutors seek a 36-month prison sentence.
What is the problem?
The allegations relate to its alleged failure to prevent extensive money laundering on the Binance platform, which represents a significant development in the discussions surrounding it.
According to the Department of Justice in ruling memo filed last week, prosecutors said,
“Zhao’s intentional violation of US law was neither an accident nor an oversight.”
They added,
“He made the business decision that violating the law of the United States was the best way to attract users, build his company, and line his pockets.”
That showed Zhao’s willful neglect to establish an effective anti-money laundering program required by the Bank Secrecy Law.
Indeed, the decision to impose a three-year prison sentence, which exceeds the recommended 18 months, underscores the seriousness of Zhao’s alleged crimes and the need for strict compliance with the law.
Reasons for the charges
Zhao alleged that Binance facilitated the processing of transactions related to illegal activities, including those involving Americans and approved individuals.
Prosecutors blame Zhao’s leadership for unreported suspicious transactions and poor controls. They have also highlighted the involvement of several designated terrorist groups such as Hamas and Al Qaeda.
In response to the allegations, Zhao resigned as CEO of Binance in November last year and recently admitted to violating the Bank Secrecy Act.
i card To the supervising judge, he expressed regret for not implementing adequate compliance controls at Binance, admitting that there was “no excuse” for his actions.
“I apologize for my bad decisions and take full responsibility for my actions. In retrospect, I should have been focused on implementing compliance changes on Binance from the beginning, and I wasn’t. “There is no excuse for not establishing the necessary compliance controls on Binance.”
Interestingly, the founder of Binance had told his team that it is “better to ask for forgiveness than permission” when it comes to legal compliance.
This statement adds intrigue as observers await Zhao’s response, while prosecutors remain firm in their position.
Other cases of money laundering
Despite Binance’s recent challenges, the performance of its BNB and other L1 tokens against BTC remained strong, as one crypto researcher, Emperor Osmo, noted,
Well, Binance is not the first to suffer such accusations. Recently, Nigeria made headlines by attempting to prosecute Binance and two of its executives on charges of money laundering and tax evasion.
Moreover, ftx There was also a fall in 2022, which led to Bankman-Fried’s fraud conviction and 25-year prison sentence.
This highlights the regulatory hurdles facing major players in the crypto sector.
This is an automatic translation of our English version.
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