Former Binance CEO Changpeng Zhao sentenced to four months in prison



Chanpeng Zhao, former CEO and co-founder of Binance, the world's largest cryptocurrency exchange, whose global user base has grown 30% year-on-year to 170 million, has been sentenced to four months in prison.

Binance founder Changpeng Zhao sentenced to four months in prison - The Verge
https://www.theverge.com/2024/4/30/24140638/binance-founder-changpeng-zhao-sentence-money-laundering



In March 2023, the U.S. Commodity Futures Trading Commission (CFTC) indicted Binance and Zhao for engaging in illegal trading.

Binance and CEO Changpeng Zhao indicted by US regulators for alleged illegal trading - GIGAZINE


by Web Summit

In November 2023, Binance admitted to failing to implement anti-money laundering measures and agreed to pay a total of $4.3 billion in fines for violating the Bank Secrecy Act. Zhao, who was also charged with similar crimes, also pleaded guilty and resigned as CEO of Binance.

Cryptocurrency exchange Binance CEO Chanpeng Zhao admits money laundering and resigns, total fine exceeds 630 billion yen - GIGAZINE



Federal sentencing guidelines recommended a maximum sentence of 18 months in prison for Zhao, but prosecutors sought a sentence of three years, twice the guidelines, citing the extent and impact of the defendant's illegal conduct. In addition, they said the sentence should reflect the significant damage to the national security of the United States caused by the defendant's criminal conduct, taking into account the impact on others.

Former CEO of cryptocurrency exchange 'Binance' Chanpon Zhao sentenced to three years in prison - GIGAZINE



Zhao's lawyers argued that he did not deserve a prison sentence, saying, 'No one has ever received a prison sentence for a similar Bank Secrecy Act violation case before. They also sought a lenient sentence, taking into account that he had been in the United States for five and a half months, away from his home, partner and children, to plead guilty.

On May 1, 2024, local time, Zhao was sentenced to four months in prison for failing to implement adequate anti-money laundering measures. Judge Richard Jones noted that Zhao 'prioritized Binance's growth and profits over compliance with U.S. laws and regulations.' While Judge Jones said Zhao was unlikely to reoffend, he called the scale of his crimes noteworthy.

As part of the plea agreement, Zhao was asked to step down as CEO of Binance, and in fact he resigned as CEO of the company as of November 2023. However, as of the time of writing, Zhao remains a major shareholder of Binance. Zhao has already agreed to pay a $50 million fine, but the news site The Verge points out that this is a negligible amount for a man with assets of $33 billion.



By the way, Zhao announced the launch of a new web platform 'Giggle Academy' to promote online education in March 2024. He is also considering investing in AI and biotechnology, and is reportedly in contact with Sam Altman of OpenAI.




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