Former U.S. SEC official John Reed Stark recently took to a post on X, spotlighting the DOJ’s filing with the U.S. Federal Court in Seattle to seek a 36-month prison sentence for Binance founder CZ (Changpeng Zhao) on allegations of violating the anti-money laundering laws (AML) on U.S. grounds. In a statement shared by the SEC veteran today, April 24, keen attention was drawn to Zhao’s sentencing, which remains poised for April 30, with Reed further cracking down on CZ’s role in Binance supporting crimes. 

Reportedly, Binance offered illegal and unlicensed money transmitting, and sanctions violations aid to designated terrorist groups, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS, while functioning atop U.S. grounds. This has ignited a bustle across the cryptocurrency landscape, with speculations surrounding the U.S. prosecutors’ decision to imprison Binance founder CZ for 36 months.

Reed Highlights CZ’s Crimes

Ex-SEC official John Reed Stark’s post on X highlights Binance’s crimes and Zhao’s unprecedented violation of U.S. laws during his tenure as the CEO of the world’s largest crypto exchange. The Binance founder led the massive financial institution that processed trillions of dollars in cryptocurrency trades annually, reaping substantial profits while flouting U.S. regulations in hand.

This alleged disregard for legal responsibilities and failure to comply with U.S. financial guidelines is what sparked severe concerns orbiting the integrity of Binance’s operations. “Zhao’s sentence should reflect the gravity of his crimes. Financial institutions are the first line of defense for the U.S. financial system,” the SEC veteran added.

Reed’s remark promptly garnered noteworthy attention as speculations build up with CZ’s hearing date, April 30, nearing. Meanwhile, per U.S. prosecutors, Zhao’s deliberate breach of U.S. laws was not a mistake or oversight but rather a strategic decision to enrich his company’s business.

Also Read: 57,586 Bitcoin (BTC) Worth $3.81 Billion Moved On-Chain, What’s Happening?

Binance Founder To Face Prison?

As mentioned above, recent reports from around the globe spotlight U.S. prosecutors’ hell-bent inclination to seek a 36-year imprisonment for Zhao. Facing a backlash across the global crypto community, Zhao is under heightened scrutiny, with expectations looming over CZ facing an imprisonment sentence on April 30.

Currently, the Binance founder is out on a $175 million bail bond. Nonetheless, per a recent hearing, “given the magnitude of Zhao’s willful violation of U.S. law and its consequences, a sentence of 36 months is warranted,” U.S. prosecutors argued.

Also Read: Hong Kong Officially Nods For Two Spot Bitcoin & Ethereum ETF

The post Ex-SEC Official Reacts To DOJ Seeking 3-Year Prison Term For Binance Founder CZ appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am