Changpeng Zhao, the founder of the world’s leading cryptocurrency exchange, was sentenced to four months in prison on Tuesday after admitting to money-laundering charges last year. The sentence, handed down in a US federal court in Seattle, was lighter than the three years initially sought by prosecutors. Before his sentencing, Zhao, also known as CZ, expressed regret for his actions as CEO of Binance, the exchange he established in 2017, and vowed to avoid similar mistakes in the future. Binance, in a coordinated settlement with the federal government, agreed to pay over $4 billion in fines and admitted to engaging in anti-money laundering activities, unlicensed money transmitting, and sanctions violations.
In response to the sentencing, Changpeng Zhao’s legal team immediately filed an appeal, citing concerns about the severity of the punishment given the mitigating circumstances and his cooperation with authorities. The appeal seeks a reconsideration of the sentence in light of Zhao’s remorse and his commitment to compliance moving forward. The investigation into Binance revealed its involvement in permitting illicit activities on its platform, such as transactions linked to child exploitation, drug trafficking, and terrorist financing. Court documents highlighted the absence of protocols within Binance to flag or report money-laundering risks, with employees reportedly aware that this oversight attracted criminal elements to the platform. These developments underscore the Department of Justice’s firm stance against financial crimes, particularly within the cryptocurrency industry.
SOURCE: CNN | MAY 1 2024
