Binance founder Changpeng ‘CZ’ Zhao should spend three years behind bars after pleading guilty to violating money laundering laws, prosecutors have argued.

In a filing in a Seattle federal court submitted on Tuesday, prosecutors said that Zhao should be sentenced to twice the maximum 18 months recommended under federal guidelines as a reflection of the scale of his wrongdoing and to act as a deterrent.

The prosecutors said that they want to send a message that "the right choice, every time, is to comply with the law."

Zhao stepped down as Binance chief exec in November 2023 after he admitted to evading anti-money laundering requirements laid out by the Bank Secrecy Act. The cryptocurrency exchange agreed to a $4.32 billion criminal penalty and has seen its reputation significantly tarnished.

The prosecutors’ letter described Binance as a ‘Wild West’ that welcomed criminals and failed to report more than 100,000 suspicious transactions linked to terrorist groups. The platform was also said to facilitate the sale of child sexual abuse materials and benefitted from ransomware attacks.

Zhao’s lawyers have sought a more lenient sentence, arguing that the disgraced figurehead was a first-time offender who accepted his responsibility and $50 million criminal fine. They also argued that there is no precedent for imprisoning a defendant in any similar case.

US District Judge Richard Jones is expected to sentence Zhao on April 30.

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