Former SEC official John Reed Stark weighed in as the DOJ seeks to detain Binance founder CZ Zhao for 36 months. The SEC veteran goes to X, highlighting the legal history.
In a recent X post, former U.S. SEC official John Reed Stark highlighted the Department of Justice’s (DOJ) filing with the U.S. Federal Court in Seattle, which seeks a 36-month prison sentence for Changpeng Zhao, the founder of Binance, on charges of violating anti-money laundering (AML) regulations on U.S. soil.
The SEC veteran issued a statement today, April 24, that drew significant attention to Zhao’s pending sentencing on April 30. Reed also intensified his scrutiny of CZ’s involvement in facilitating criminal activities on Binance.
According to reports, Binance, which operated from U.S. soil, facilitated sanctions violations and illicit money transfers to designated terrorist organizations, such as Hamas, al-Qaeda, and the Islamic State of Iraq and Syria (ISIS).
Controversy has surrounded the decision of U.S. prosecutors to imprison Binance founder CZ for 36 months, which has sparked a frenzy throughout the cryptocurrency landscape.
Reed Recounts CZ Crimes
Ex-SEC official John Reed Stark’s post on X details the criminal activities of Binance and Zhao’s extraordinary contravention of United States legislation while serving as the CEO of the largest cryptocurrency exchange globally.
Under the direction of the enormous financial institution, which annually processed trillions of dollars in cryptocurrency transactions while evading U.S. regulations, the founder of Binance amassed substantial profits.
The purported neglect of legal obligations and non-compliance with financial regulations in the United States is the source of significant apprehension regarding the credibility of Binance’s activities.
“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 immediately garnered significant attention, as rumors intensified in anticipation of CZ’s April 30 hearing date.
According to U.S. prosecutors, Zhao’s intentional violation of U.S. legislation was not an oversight or error but rather a calculated maneuver aimed at enhancing the financial standing of his organization.
Binance Founder To Face Prison?
As previously stated, recent global reports shed light on the determined intention of U.S. prosecutors to pursue a 36-month prison sentence for Zhao.
Amid a backlash from the global crypto community, Zhao is the subject of increased scrutiny, as April 30 brings the possibility that CZ will receive a prison sentence.
A $175 million surety bond is pending the release of the founder of Binance.
However, in light of the seriousness of Zhao’s deliberate breach of United States legislation and the resulting repercussions, U.S. prosecutors contended at a recent hearing that a 36-month sentence is justifiable.
