Defense attorneys representing Changpeng Zhao, the mastermind behind Binance, the prominent digital currency platform, have argued against imposing a prison sentence on him.

Federal prosecutors, in a court document filed on Wednesday, recommended a three-year prison term for Changpeng Zhao, citing his involvement in an extensive money laundering violation and acknowledging his guilty plea to the offense, which they described as unprecedented.

In response, Zhao’s defense team presented a contrasting view in their own memorandum, advocating for no incarceration but rather a probationary sentence. They emphasized Zhao’s acknowledgment of his wrongdoing and highlighted his dedication to charitable endeavors.

The upcoming sentencing hearing before Federal Judge Richard A. Jones in Seattle will determine the final outcome, weighing the opposing sentencing proposals for Zhao. This legal decision marks a significant milestone in a series of legal actions targeting influential figures within the global cryptocurrency sphere.

Merely a year and a half ago, Zhao, the high-flying CEO of Binance, played a pivotal role in the events that led to the downfall of FTX, a major competitor of Binance, and the subsequent imprisonment of FTX’s founder, Sam Bankman-Fried, who received a 25-year sentence for fraudulent activities. Now, Zhao himself faces the prospect of a prison term following his cooperation with prosecutors in November, where he admitted to the lack of robust anti-money laundering measures at Binance.

According to the prosecution’s filing, the offense Zhao confessed to carries a sentencing recommendation of 12 to 18 months under federal guidelines. While the U.S. probation department suggested a five-month imprisonment, the government is pushing for a three-year term, citing the extensive impact of Zhao’s actions.

As the founder of Binance, Zhao once held a position of immense influence in the cryptocurrency domain, with Binance handling a substantial portion of crypto transactions at its peak. Zhao’s net worth is estimated at $33 billion by Forbes.

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