SEATTLE, April 30, 2024- Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, was sentenced to four months in prison, on Tuesday (April 30) after pleading guilty to federal charges of violating anti-money laundering laws. 1
The charges stemmed from a Department of Justice investigation that found Binance failed to implement adequate procedures to prevent money laundering on its platform.
According to court documents, Binance processed billions of dollars in transactions with limited oversight, allowing criminals to potentially use the exchange to launder illicit funds.
Zhao, also known by his initials “CZ,” stepped down as CEO in November 2023 as part of a plea deal with the Justice Department.
Prosecutors had originally sought a three-year sentence, while Zhao’s defense team argued for probation.
U.S. District Judge Richard Jones said during the sentencing hearing that Binance, under Zhao’s leadership, “failed at that opportunity” to comply with anti-money laundering regulations.
The sentence is seen as a significant development in the ongoing scrutiny of cryptocurrency exchanges by U.S. regulators.
It remains to be seen how this case will impact the future of Binance and the broader cryptocurrency industry.
- Zhao Gets Four Months Prison: https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html[↩]
