šØBREAKING: Binance Founder Changpeng Zhao Sentenced to Jail for Money Laundering
Changpeng Zhao, the former CEO of Binance, has started a four-month prison sentence in Lompoc, California, for not preventing money laundering on the exchange.
Zhao pleaded guilty and received a lighter sentence than prosecutors had sought.
He also agreed to pay a $50 million fine.
Changpeng Zhao, the billionaire founder of Binance, the worldās largest cryptocurrency exchange, has been sentenced to prison. According to CNBC, Zhao is currently incarcerated in Lompoc, California. This news was confirmed by his defense team at Latham & Watkins. But what led to his imprisonment?
Keep reading to learn about the money laundering charges that brought down the Binance empire.
Details About the Sentencing
In April, a United States federal court in Seattle sentenced Zhao to four months in prison after he pleaded guilty to violating money laundering laws. This sentence is notably shorter than the three years that federal prosecutors had requested. Zhaoās defense team had advocated for a five-month probationary period, while the recommended prison sentence ranged from 12 to 18 months.
After his sentencing, Zhao expressed regret for his actions, admitting he failed to enforce strong anti-money laundering measures at Binance.
"I believe the first step of taking responsibility is to fully recognize the mistakes."
ā Changpeng Zhao
As part of his plea deal in November, Zhao stepped down as Binance CEO and agreed to substantial financial penalties. However, he still holds about 90% ownership in the company.
Paying the Price
In addition to his prison sentence, Zhao and Binance have agreed to pay significant penalties, totaling $4.35 billion to the US Commodity Futures Trading Commission, including a $50 million fine.
