Binance Cryptocurrency Exchange Founder Sentenced to 4 Months in Prison

Once considered the most powerful figure in the crypto industry, Zhao, also known by his nickname “CZ,” is the second major crypto tycoon to be sentenced to prison recently, following the conviction of crypto scammer Sam Bankman-Fried, who was sentenced to 25 years in prison.

Changpeng Zhao on his way to court. Photo: Reuters

The sentence imposed by Judge Richard Jones in Seattle was significantly lower than the three years prosecutors had sought. Before handing down the sentence, the judge accused Zhao of putting Binance’s growth and profits above U.S. law.

Zhao, 47, showed no particular reaction as he heard the verdict. He wore a navy blue suit and tie in the courtroom, which was attended by his mother and several other family members.

Prosecutors said Binance used a “Wild West” model to welcome criminals and failed to report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and the self-proclaimed Islamic State (IS).

They also said Zhao's exchange facilitated the sale of child sexual abuse material and received a large portion of proceeds from hackers and malware organizations.

Binance agreed to a $4.32 billion fine, while Zhao personally paid a $50 million criminal fine plus an additional $50 million to the U.S. Commodity Futures Trading Commission.

“I am sorry,” Zhao told the judge before being sentenced. “I failed to implement a comprehensive anti-money laundering program… I now realize the seriousness of that mistake.”

Prosecutors told the judge that a harsh sentence would send a clear signal to other criminals. But prosecutor Kevin Mosley also said: “We do not think Zhao is Sam Bankman-Fried or... a monster.”

Zhao stepped down as CEO of Binance last November, when he and the exchange he founded in 2017 admitted to evading money laundering requirements under the Bank Secrecy Act.

Several other crypto tycoons have also been in the crosshairs of US authorities after crypto prices crashed in 2022, exposing a plethora of fraud and malpractice in the emerging industry.

Huy Hoang (according to Reuters)

Source: https://www.congluan.vn/nha-sang-lap-san-tien-dien-tu-lon-nhat-the-gioi-binance-bi-ket-an-4-thang-tu-post293783.html