THE founder of the cryptocurrency firm, Binance, Changpeng Zhao has been sentenced to four months in a US prison after pleading guilty to money laundering charges.
According to media reports, Changpeng Zhao, a Canadian, resigned from his post at the world’s largest cryptocurrency exchange platform late last year as part of a deal with US authorities.
According to investigations by two Treasury agencies, Binance failed to prevent transactions by movements such as the Islamic State group, Al-Qaeda or the armed wing of Hamas.
Zhao pleaded guilty to violating the US anti-money laundering laws and Binance agreed in February 2024 to pay $4.3 billion to settle charges.
According to a court filing, prosecutors had asked the judge to impose three years behind bars for a crime that typically results in probation.
“He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets.
“The sentence in this case will not just send a message to Zhao but also the world,” Justice Department lawyers said of Zhao in a sentencing memorandum.
Attorneys for Zhao countered in a filing that being punished with probation is just, appropriate, and in line with legal precedent.
They cited Zhao’s acceptance of responsibility along with what they called his philanthropic track record.
Binance was created in 2017 and cornered much of the crypto-trading market, turning its founder and Chief Executive, Zhao into a billionaire.
Binance runs crypto exchanges and provides other services worldwide, but it took a severe hit when crypto markets collapsed and regulators began probing the legality of its business.
