US prosecutors call for Binance's CZ to be jailed for three years

BINANCE founder Changpeng 'CZ' Zhao should be imprisoned for three years, US prosecutors have demanded.

Zhao is expected to be sentenced in Seattle on Tuesday April 30 after pleading guilty to money laundering charges.

Last year, the 47-year-old stepped down as the CEO of the company he launched seven years ago before agreeing to pay a penalty of $4.32 billion for the firm's violations. He also agreed to personally pay $50m and resign his position.

"Given the magnitude of Zhao's wilful violation of US law and its consequences, an above-guidelines sentence of 36 months is warranted," prosecutors filed with the US western district court of Washington.

The move goes against the federal sentencing guidelines of 18 months. Canadian citizen Zhao has already agreed not to appeal a sentence of two years or under, and has been allowed free since November on a massive $175 million bond while being restricted to remain in the US.

According to the US authorities, Binance failed to report as suspicious more than 100,000 transactions. It is understood terrorist organisations Hamas, al Qaeda and ISIS were among them.