- Changpeng Zhao, the former CEO of Binance, entered a guilty plea in November 2023 to charges of violating anti-money laundering laws and penalties. He also agreed to pay a fine of $50 million.
- On Tuesday in Seattle, former CEO of Binance Changpeng Zhao received a four-month prison sentence after entering a guilty plea to charges of money laundering.
Tuesday’s sentencing session saw Zhao apologize and express his desire to accept accountability for his “mistakes.” Additionally, he stated that Binance has put in place an anti-money laundering and Know Your Customer program and is working with law enforcement, as reported by The Verge.
Zhao’s attorneys requested a 36-month prison sentence for him, claiming that he and his exchange deliberately broke US regulations and targeted consumers in the United States.
Prosecutors stated in their prior sentencing memo that Zhao’s deliberate breach of U.S. law was neither an accident or an oversight. “He decided that breaking American law was the greatest way to draw customers, expand his business, and enrich himself.
Judge Richard Jones of the US District Court for the Western District of Washington stated on Tuesday that he did not agree with a three-year sentence and that Zhao was never told of any criminal behavior.
Zhao’s attorneys, in the meantime, requested that the court sentence him to probation, arguing that the former executive has demonstrated that he has taken responsibility for his actions and truly regrets them.
Mr. Zhao is a first-time offender who is 47 years old. According to his lawyers, his life has been based on three principles: serving the greater good, using technology—particularly Binance—as a tool for good in the world, and being devoted to his family.
Zhao’s attorney, William Burck, also pointed out that because of Zhao’s notoriety, riches, and government cooperation, he poses a concern in some security facilities.
Zhao entered a guilty plea and agreed to pay a $50 million fine in November after failing to put in place a successful anti-money laundering program in the United States. In what is likely one of the biggest business settlements in history, Binance agreed to pay $4.3 billion.
Richard Teng, who had previously held the position of CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market before to joining Binance, took over as CEO after Zhao also resigned.
A legal dispute between Binance and the US Securities and Exchange Commission also exists. In June, the regulator filed a lawsuit against Binance Holdings and Zhao, alleging that the cryptocurrency exchange had misled its clients, neglected to prevent US investors from accessing Binance.com, misdirected funds to Zhao’s own investment funds, and run an unregistered exchange.
Last week, more than 160 letters of support were sent on Zhao’s behalf by friends, relatives, and experts in the cryptocurrency sector. In one letter, some of his old friends begged for a lower sentence, stating that Zhao is capable of growing from this experience, atoning, and becoming a contributing member of society.
Dennis Kelleher, CEO of Better Markets, referred to the circumstances as a “miscarriage of justice” and stated that further Binance employees ought to have been targeted by the prosecution.
The Department of Justice (DOJ) charged only one person—Binance’s founder, owner, and former chief executive officer, Changpeng Zhao (CZ)—and one count of violating the Bank Secrecy Act for failing to ensure Binance implemented an effective anti-money laundering compliance program, Kelleher said in a memo on Monday, despite the startling, years-long, heinous crimes that Binance’s money laundering enabled and facilitated.
Kelleher mentioned Zhao’s wealth as well. Zhao’s net worth was estimated by Bloomberg to be approximately $42.9 billion.
However, Kelleher said, the DOJ only fined him $50 million, or.1% of his net value, for his crimes. That is not “significant,” nor will it “effectively punish Zhao for his criminal acts” or “deter others,” as asserted by the DOJ, Treasury, and other government officials.
About a month has passed since Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years. Zhao’s punishment follows this development. A jury last year convicted him guilty on all seven counts of criminal charges related to misleading FTX’s investors, lenders, and clients.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
