Binance founder Changpeng Zhao, the leading global cryptocurrency exchange, is facing a recommended three-year prison after admitting guilt for breaking anti-money laundering laws.
As per Reuters, Zhao, who is expected to be sentenced on April 30 in Seattle, stepped down as Binance's chief last November, when he and the exchange admitted to the violations, and the firm agreed to a penalty of $4.32 billion.
US prosecutors said in an official statement during a court hearing on Tuesday, noting, "Given the magnitude of Zhao's willful violation of U.S. law and its consequences, an above-guidelines sentence of 36 months is warranted."
U.S. authorities have said Binance failed to report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and Syria, or ISIS.
Prosecutors said Binance's platform also supported the sale of child sexual abuse materials and was a recipient of a large portion of ransomware proceeds.
Zhao, commonly known as CZ, agreed to pay $50 million and cease involvement with Binance, which he founded in 2017.
Meanwhile, Binance's penalty included a $1.81-billion criminal fine and restitution of $2.51 billion.
