Home » US business news » Former Binance Boss Changpeng Zhao Jailed For Four Months
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Changpeng Zhao, former CEO of Binance, has been sentenced to four months in jail after admitting money laundering charges.
The Guardian reports Zhao had previously pleaded guilty to the charges and stepped down as CEO.
Binance was also fined $4.3 billion, and Zhao was given a $50 million fine last year.
Judge Richard Jones highlighted several mitigating factors during sentencing.
These included Zhao’s cooperation with law enforcement and positive character references.
He also noted Zhao had a low likelihood of reoffending.
The Department of Justice had sought a three-year sentence for Zhao, arguing his actions "violated US law on an unprecedented scale.
Lawyers said his sentence should "reflect the gravity of his crimes."
Zhao’s defense argued for probation, emphasizing his remorse and proactive remediation efforts.
Known as CZ, Zhao has been a major figure in cryptocurrency.
He founded Binance in 2017.
His legal issues come amid broader regulatory examinations of the crypto sector.
This is paralleled by other industry leaders such as Sam Bankman-Fried, sentenced to 25 years for financial fraud this year.
The prosecution’s case centered on Zhao’s failure to adhere to U.S. anti-money laundering regulations and report adequately to authorities like the Financial Crimes Enforcement Network.
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They say he turned Binance into a haven for illicit financial activities involving extremist groups and criminal elements.
Binance reportedly failed to report over 100,000 suspicious transactions.
These included interactions with designated terror organizations such as al-Qaida, Islamic State, and Hamas.
After Zhao’s guilty plea, U.S. Attorney General Merrick Garland said: "From the very beginning, Zhao and other Binance executives had engaged in a deliberate and calculated effort to profit from the US market without implementing the controls that are required by US law."
At the sentencing, the probation department suggested Zhao serve five months in prison, balancing deterrence and fairness.
Zhao delivered a brief statement in court, expressing his intent to focus on an online education platform and reflecting on his conduct.
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