The United States prosecutors said in a court filing on Tuesday, April 23, that Changpeng Zhao, who pled guilty to breaking laws against money laundering, should spend 36 months in jail. Zhao is the founder and former CEO of the biggest cryptocurrency exchange, Binance.

After admitting wrongdoing and agreeing to pay a $4.32 billion fine, Zhao resigned last November. His sentencing is scheduled for April 30 in Seattle.

US Attorneys Recommend 3-Year Sentence

US prosecutors said that a 36-month sentence is justified considering the seriousness of Zhao's deliberate violation of US law and its effects, Reuters reported. This was stated in their statement to the US district court for the western district of Washington.

Zhao, who had already decided not to appeal, faces a maximum jail term of 18 months according to federal sentencing guidelines. A $175 million bail has allowed him to remain free in the US.

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Binance Allegedly Facilitates Criminal Profits Trades

As stated in a CNBC report, among Zhao's alleged transgressions are the willful failure to comply with the Bank Secrecy Act's requirements for an effective anti-money laundering program and the facilitation of transactions involving the proceeds of illegal activity through Binance.

US officials have claimed that Binance concealed over 100,000 transactions involving globally recognized terrorist organizations, such as ISIS, Hamas, and al Qaeda.

In addition to receiving a significant amount of ransomware funds, prosecutors said that Binance's platform facilitated the selling of files depicting child sexual assault.

Zhao consented to pay $50 million and give up his role at Binance, which he established in 2017.

As part of its punishment, Binance had to pay a $1.81 billion criminal fine and return $2.51 billion.

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