Binance founder Changpeng Zhao is set to be sentenced on April 30 after pleading guilty to violating anti-money laundering laws in the United States.
The former executive of the cryptocurrency exchange faces up to 10 years in prison after admitting in November to one count of violating the Bank Secrecy Act.
Accordingly, federal prosecutors are seeking a 36-month sentence for Zhao, double the upper recommended guideline of 18 months for the charge. In a filing, they argued a harsher penalty is warranted given the seriousness of the offense.
In contrast, defense attorneys counter that Zhao has accepted responsibility and should receive just five months probation. They note his $50 million personal fine already represents a steep price for the first-time offender with a $43 billion net worth.
Remarkably, the billionaire founded Binance in 2017 and built it into the world's largest crypto trading platform before resigning as part of a $4.30 billion settlement with US authorities.
The sentence could set an important precedent as the United States ramps up enforcement efforts against crypto firms over lax money laundering protections.
In light of this, the latest case follows the 25-year fraud sentence imposed on FTX founder Sam Bankman-Fried earlier this year.
Moreover, the decision could also impact business at Binance, which continues launching new trading products despite its former leader's legal troubles.
On Tuesday, Binance Futures unveiled new USDC perpetual contracts with margin and 50x leverage, as per Traders Union.
Judge Richard Jones will hand down Zhao's sentence Tuesday morning in US District Court in Seattle. Subsequently, Changpeng Zhao has remained in custody since his November arrest.