Binance Founder Changpeng Zhao Sentenced to 4 Months in Prison

Changpeng “CZ” Zhao, the founder of Binance, has been sentenced to four months in prison.

The sentence follows Zhao’s guilty plea to a charge of violating the Bank Secrecy Act. This offense could have carried up to a decade behind bars.

Zhao’s cooperation with authorities, including his guilty plea last November, significantly reduced the potential maximum sentence to about 36 months. However, departing from the sentencing guidelines, a federal judge ordered a four-month term, citing the severity and impact of Changpeng Zhao’s actions on financial regulations.

“There needs to be an effort by this court to impose a sentence that’s appropriate and reasonable,” the judge said.

The US Department of Justice had recommended a three-year prison sentence, double the term agreed upon in Zhao’s plea deal. Conversely, Zhao’s defense team sought no prison time, advocating for house arrest and probation, supported by a security plan from a professional company to monitor Zhao’s residence.

In addition to the prison sentence, Zhao has agreed to pay a $50 million fine, a modest amount compared to his reported net worth of approximately $43 billion. Binance, the cryptocurrency exchange Zhao founded in 2017 and grew to become the largest in the world, also faced financial repercussions. When Zhao entered his guilty plea, the firm agreed to a staggering $4.3 billion fine.

Read more: Top 8 Binance Card Alternatives Available in Europe in 2024

The sentence marks a significant moment for the crypto market, underlining the increasing scrutiny and regulatory demands facing industry leaders.

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