Former Binance CEO Changpeng Zhao Sentenced to Four Months in Prison
Former Binance CEO Changpeng Zhao Sentenced to Four Months in Prison for Money Laundering Violations
Changpeng Zhao, the former chief executive of Binance, was sentenced to four months in prison after pleading guilty to violating US money-laundering laws at the world’s largest cryptocurrency exchange. The sentence was imposed by US District Judge Richard Jones in Seattle, who rejected prosecutors’ request for a three-year term.
Once considered the most powerful person in the crypto industry, Zhao, known as “CZ,” is the second major crypto boss to be sentenced to prison. In March, Sam Bankman-Fried received 25 years behind bars for stealing $8 billion from customers of his now-bankrupt FTX exchange.
Prosecutors said Binance employed a “Wild West” model that welcomed criminals and did not report suspicious transactions with designated terrorist groups. They also said Zhao’s exchange supported the sale of child sexual abuse materials and received a large portion of ransomware proceeds, resulting in a $4.32 billion penalty for Binance.
Zhao expressed remorse before the sentencing, acknowledging his failure to implement an adequate anti-money laundering program. Prosecutors argued for a tough sentence to send a clear signal to other would-be criminals.
Several other crypto moguls are also under scrutiny by US authorities following the industry’s collapse in 2022. Zhao had been free on a $175 million bond and agreed not to appeal any sentence within federal guidelines, in addition to paying a $50 million fine to the Commodity Futures Trading Commission.
