Binance founder Changpeng Zhao, who pleaded guilty to money laundering violations in November, was sentenced to four months in prison on Tuesday.
U.S. prosecutors had recommended a 36-month sentence for Zhao.
The crypto billionaire stepped down as Binance’s CEO as part of his agreement with the Justice Department.
Binance founder Changpeng Zhao has been sentenced to four months in prison for allowing rampant money laundering on the world’s largest cryptocurrency exchange. The sentence was far less than the three years prosecutors had sought, but defence attorneys had asked that Zhao spend no time in prison. Despite his wealth and status, Zhao was held accountable for ignoring U.S. banking requirements that would have slowed Binance’s explosive growth. He pleaded guilty to failing to maintain an anti-money-laundering program and stepped down as Binance CEO. The company also agreed to pay $4.3 billion to settle related allegations. U.S. officials stated that Zhao deliberately looked the other way as people conducted transactions supporting child sex abuse, illegal drug trade, and terrorism. Zhao expressed regret and acknowledged his failure in establishing necessary compliance controls at Binance. Notably, no one has ever been sentenced to prison time for similar violations of the Bank Secrecy Act, making this case significant.
In a separate incident, in November 2023, Zhao agreed to resign from Binance and plead guilty to money laundering. As part of the guilty plea, he paid a $50 million fine and was barred from any further involvement in the business.
Despite his past achievements, Zhao’s actions have had serious legal consequences, emphasizing that no one is above the laws of the United States, regardless of their wealth or status.
