Binance founder sentenced to four months in prison for money laundering
After pleading guilty to money laundering, Changpeng Zhao's plea deal has seen him slapped with a four month sentence.
Cryptocurrency has been around for several years now and recently we’ve seen more founders and CEOs of crypto platforms with charges brought against them. Today, the former CEO and founder of Binance has received his sentencing for money laundering. Changpen Zhao is set to spend four months of his life in prison due to his neglect in ensuring all regulations had been complied with.
Source: Binance
On April 30, 2024, CNBC reported that Binance founder Changpeng Zhao has received a four month prison sentence. This sentence is significantly reduced from the prosecutor’s recommendation of 36 months.
“You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with,” U.S. District Judge Richard Jones said. “And so you failed at that opportunity.”
In November, the then-CEO of Binance, Changpeng Zhao, pled guilty to criminal charges of money laundering. This was part of a $4.3 billion settlement with the Department of Justice. On the other side of the aisle, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud. In a quote to CNBC, Braden Perry, former senior trial lawyer for the CFTC, notes that Zhao’s case focuses on “regulator and compliance failures, while SBF’s case hinges on direct financial misconduct and deception.”
It seems as though the chickens have come home to roost for many of the early-day founders of cryptocurrency platforms. The budding industry has continued to encounter challenges with regulation as well as value, as various other industries continue to separate themselves from the movement. Take a look at our Cryptocurrency topic for more information.
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