Former Binance CEO Changpeng Zhao sentenced to 4 months in prison
Changpeng Zhao, who resigned as CEO of the cryptocurrency exchange Binance last November as part of a settlement with the U.S. government, has been sentenced to 4 months in prison.
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In the criminal case heard at the Seattle Federal Court, prosecutors requested a 3-year prison sentence for Zhao as a deterrent, while defense attorneys requested 5 months of probation.
Zhao's lawyers argued that the former CEO had accepted his mistake, had come to the U.S. voluntarily, had not previously violated the law, and had cooperated.
Once considered the most powerful person in the crypto sector and known as "CZ," Zhao was sentenced to 4 months in prison for "failing to provide adequate protection against money laundering."
A 4.3 BILLION DOLLAR FINE HAD BEEN IMPOSED
The U.S. government imposed a 4.3 billion dollar fine on Binance, the world's largest cryptocurrency exchange, last November for violating anti-money laundering and sanctions laws. The fine in question was one of the largest ever imposed in the country.
Zhao had reached an agreement with the U.S. government to resolve the investigation into Binance.
Born in China and having immigrated to Canada at the age of 12, Zhao had agreed to resign and pay a 50 million dollar fine as part of the deal.
In a post on his X account, Zhao had also stated that he had made mistakes and needed to take responsibility.
Sam Bankman-Fried, the founder and former CEO of the cryptocurrency exchange FTX, was also sentenced to 25 years in prison in April in a criminal case where he was tried on charges of fraud and money laundering.