Changpeng “CZ” Zhao, the founder of Binance, was sentenced to 4 months in prison.
The sentence comes after Zhao pleaded guilty to a single count of violating the Bank Secrecy Act, a crime that carries a maximum penalty of 10 years behind bars.
Binance founder Changpeng “CZ” Zhao sentenced to prison Zhao’s cooperation with authorities, including pleading guilty in November last year, saw the potential maximum sentence slashed to around 36 months. However, departing from sentencing guidelines, the federal judge handed down the four-month term, citing the seriousness and impact of Changpeng Zhao’s actions on the regulation of finance. The judge said: “This court must endeavor to craft a sentence that is both sufficient and reasonable.”
The US Department of Justice had recommended a three-year jail term, double the sentence agreed in Zhao’s plea deal. CZ’s defense attorneys, on the other hand, argued against any jail time, instead proposing home detention and probation, an idea supported by a security plan from a professional house arrest monitoring company. In addition to the prison sentence, Zhao has agreed to pay a $50 million fine, a relatively modest sum given his estimated $43 billion net worth. Binance, the cryptocurrency exchange founded by Zhao in 2017, and which became the world’s largest, has also faced financial repercussions. When Changpeng “CZ” Zhao entered his guilty plea, the company agreed to pay a whopping $4.3 billion fine.
The sentencing marks a significant moment for the cryptocurrency industry, highlighting the growing regulatory scrutiny and enforcement actions that industry leaders now face.#Bitcoin #Binance