Former CEO of Binance, Changpeng Zhao, arrested for facilitating money laundering at world’s largest cryptocurrency exchange
The former boss of the world’s largest cryptocurrency exchange has been sentenced to four months in prison for allowing money laundering.
Binance founder Changpeng Zhao, also known as CZ, received the sentence after pleading guilty to violating US anti-money laundering laws aimed at preventing terrorist financing.
In seeking a tough stance, US prosecutors requested a three-year prison term for Zhao, which is twice the maximum 18 months recommended by federal sentencing guidelines.
Mr. Zhao has already paid a $50 million (£40 million) fine.
He is the second prominent figure in the crypto industry to be incarcerated. Recently, the founder of FTX, Sam Bankman-Fried, was sentenced to 25 years for embezzling billions of dollars from the now-defunct crypto exchange.
Bankman-Fried has filed an appeal against his conviction and sentence.
In November, Mr. Zhao resigned from his position at Binance after admitting to evading requirements under the US Bank Secrecy Act.
The company agreed to a $4.3 billion (£3.4 billion) penalty as prosecutors alleged it operated under a “wild west” model that failed to report 100,000 suspicious transactions involving terrorist organizations.
Furthermore, prosecutors stated that Binance facilitated the trafficking of child sexual abuse materials and profited from ransomware cyberattacks.
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