Hassan Maishera
TL;DR
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Former Binance CEO Changpeng Zhao was sentenced to four months in prison.
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The Binance founder pleaded guilty in the U.S. to anti-money laundering and sanctions violations in November 2023.
CZ Gets Four Months in Prison
Former Binance CEO Changpeng Zhao was sentenced to four months in prison on Tuesday. This latest development comes after CZ pleaded guilty to anti-money laundering violations in November 2023.
During the hearing in Seattle, CZ apologized and said he wanted to take responsibility for his mistakes. He further pointed out that Binance has put in place Know Your Customer and anti-money laundering program and is cooperating with the government.
Prosecutors initially asked for a 36-month imprisonment for CZ, stating that the founder and his exchange targeted US users and violated the country’s laws. The prosecutors added that,
"Zhao’s willful violation of U.S. law was no accident or oversight. He made a business decision that violating U.S. law was the best way to attract users, build his company, and line his pockets."
However, Judge Richard Jones of the U.S District Court for the Western District of Washington didn’t agree with the 36-month sentencing, adding that CZ was never informed of illegal activities.
CZ’s lawyers asked the court to sentence him to probation and said he deeply regrets his offense and has accepted responsibility. They said,
"Mr. Zhao is a forty-seven-year-old first-time offender. His life has been built on three pillars: devotion to his family, developing technology (and especially Binance) as a force for positive change in the world, and serving the greater good."
The ruling comes roughly five months after CZ pleaded guilty in the U.S. for failing to implement an effective anti-money laundering program on Binance. He agreed to pay a $50 million fine while Binance Binance agreed to pay $4.3 billion.
CZ also resigned from his role as Binance CEO. binance continues to be embroiled in a lawsuit with the US SEC. The regulator accused Binance and CZ of lying to customers, failing to restrict U.S. investors from accessing Binance.com, misdirecting capital to separated investment funds owned by the founder and operating as an unregistered exchange.
