Changpeng Zhao, the founder and CEO of Binance, the world’s largest cryptocurrency exchange, faces a significant sentencing recommendation from the US Department of Justice (DOJ). This recommendation comes after Zhao’s guilty plea to charges related to severe lapses in the company’s anti-money laundering (AML) controls, as mandated by the US Bank Secrecy Act.

In a scathing sentencing memorandum, the DOJ outlined Zhao’s explicit disregard for US regulations, citing his approach to legal compliance as “Better to ask for forgiveness than permission.” This approach suggested a deliberate bypass of regulatory requirements to expedite Binance’s market expansion and profitability.

The prosecution highlighted how Zhao’s decisions to ignore US laws were integral to Binance’s business strategy, particularly in aggressively targeting US customers without adhering to requisite legal standards. The DOJ emphasized that Zhao’s actions enabled Binance to operate in a manner that invited illicit financial flows, describing it as a ‘Wild West’ model of cryptocurrency exchange.

The gravity and scale of these violations were underscored, with the DOJ noting how Zhao’s failure to implement an effective AML program led Binance to process hundreds of millions of dollars worth of transactions violating US sanctions against Iran and other countries, quantifying the total at approximately $898 million.

Given these findings, the DOJ is recommending a 36-month term of imprisonment for Zhao to reflect the seriousness of the offense and send a clear message regarding respect for the law, deterrence, and just punishment for his criminal acts.

Zhao’s sentencing is poised to set a precedent in the regulatory oversight of the crypto industry, particularly concerning compliance with US financial laws. The outcome will likely resonate across the crypto landscape, potentially reshaping how exchanges operate in compliance with US regulations.

The final sentencing decision, expected to be delivered on April 30, marks a crucial juncture for the legal scrutiny of crypto operations within the United States.

At press time, BNB traded at $607.7.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.