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Changpeng Zhao, the founder and former CEO of Binance, has been handed a four-month prison sentence in the United States for his involvement in money laundering activities. Despite Zhao's guilty plea at the end of last year, it was reported by The Verge that he prioritized Binance's growth and profits over complying with US laws.
The judge stated that Zhao's actions allowed almost $900 million in prohibited transactions to take place, including transactions made by customers from Iran, Cuba, and Syria, despite sanctions prohibiting such activities. The consequences of Zhao's violations were described as "gigantic" and having caused "significant damage" to the national security of the United States.
It is worth noting that the penalty imposed on Zhao was significantly lower than what the plaintiff had demanded, as they had sought a three-year prison sentence. Zhao's lawyers argued that he should not receive a prison sentence, citing that previous suspects in similar cases had not been incarcerated. As part of a settlement, Zhao resigned from his position at Binance in November and agreed to pay a fine of 50 million euros.
Despite previously stating that he would not appeal a prison sentence of less than 18 months, Zhao will now serve four months behind bars following his conviction for money laundering offenses.
English (US)