Changpeng Zhao
Changpeng Zhao, once hailed as a titan of the cryptocurrency world and former CEO of Binance, was sentenced to four months in prison by a US court, according to a Reuters report.
The verdict came after Zhao pleaded guilty to breaching US anti-money laundering laws.
Prosecutors said Binance followed a “Wild West” model, welcoming criminals and failed to report over 100,000 suspicious transactions with several terror groups.
Known as “CZ,” Zhao’s fall from grace underscores the intensifying crackdown on financial misconduct within the burgeoning cryptocurrency sector. The verdict, delivered by US District Judge Richard Jones in Seattle, notably diverged from the harsher punishment of three years in jail sought by prosecutors.
Also Read: Binance acquires Japanese crypto exchange SEBC
Zhao’s transgressions, which included prioritising Binance’s growth over adherence to US laws, were criticised by the judge during the hearing.
While Zhao expressed remorse before the court, acknowledging the gravity of his lapses in implementing robust anti-money laundering measures, the repercussions reverberate beyond his personal fate. Binance, agreeing to a staggering US$4.32 billion penalty, faces a long road to redemption as it navigates heightened regulatory scrutiny and seeks to restore investor trust.
Over a month ago, Sam Bankman-Fried was sentenced to 25 years in prison by a US court for stealing US$8 billion from customers of his now-bankrupt FTX exchange.
—
X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.
Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.
Image Credit: Milken Institute.
The post Binance founder sentenced to four months in prison by US court appeared first on e27.