The prosecutors of the United States of America (USA) are seeking a prison term of 36 months for the founder of Binance, the worlds largest cryptocurrency exchange, Changpeng Zhao.

New Telegraph gathered that the US prosecutors tendered the decision in a court filing on Tuesday, April 23.

It would be recalled that the cryptocurrency exchange is also facing charges in Nigeria for alleged money laundering.

The development, according to Reuters came after Zhao pleaded guilty to violating laws against money laundering.

He is expected to be sentenced on April 30 in Seattle.

Zhao stepped down as Binances chief last November, when he and the exchange admitted to the violations, and the firm agreed to a penalty of $4.32 billion.

Given the magnitude of Zhaos willful violation of US law and its consequences, an above-guideline sentence of 36 months is warranted, prosecutors told the court.

The news agency reports that federal sentencing guidelines set a maximum sentence of 18 months in prison for Zhao, who had agreed not to appeal against any stretch up to that length.

He has been free In the United States on a $175-million bond.

US authorities said Binance failed to report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and Syria, or ISIS.

Prosecutors said Binances platform also supported the sale of child sexual abuse materials and was a recipient of a large portion of ransomware proceeds.

Zhao, commonly known as CZ, agreed to pay $50 million and cease involvement with Binance, which he founded in 2017.

Binances penalty included a $1.8bn criminal fine and restitution of $2.51bn. (New Telegraph)