Binance Founder Changpeng Zhao Sentenced to Four Months in Prison
Changpeng Zhao, the billionaire founder of the giant cryptocurrency exchange Binance, was sentenced to four months in prison on Tuesday, a much lighter penalty than other crypto executives have faced since the industry imploded in 2022.
Mr. Zhao pleaded guilty last year to a money-laundering violation, admitting that his company allowed terrorist groups and other criminals to have access to its platform. Despite prosecutors requesting a three-year sentence, Judge Richard A. Jones decided on the four-month sentence, citing Mr. Zhao’s acceptance of responsibility and unlikely future lawbreaking.
The sentencing marks the second high-profile penalty this year in the Justice Department’s campaign against criminal behavior in the crypto industry. In contrast to the 25-year sentence of Sam Bankman-Fried, Mr. Zhao’s sentence has sparked controversy and criticism from some quarters.
Dennis Kelleher, the president of Better Markets, called Mr. Zhao’s sentence “an egregious miscarriage of justice,” while prosecutors argued that his crime was on an “unprecedented scale.” However, defense lawyers highlighted Mr. Zhao’s remorse and philanthropic intentions, advocating for no prison time.
Despite the sentence, Mr. Zhao retains his ownership stake in Binance and a $33 billion fortune, making him crypto’s wealthiest executive. He has already begun planning his next ventures, including an online education platform and potential investments in biotechnology.
As Mr. Zhao prepares to serve his sentence, the crypto industry continues to evolve, with Binance remaining a significant player. The outcome of his case and its implications for the industry will undoubtedly be closely watched by stakeholders and observers alike.
