beincrypto.com
Changpeng “CZ” Zhao, the founder of Binance, has been sentenced to five 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.
Binance Founder Changpeng Zhao Sentenced to Prison
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 five-month term, citing the severity and impact of Changpeng Zhao’s actions on financial regulations.
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 coupled with 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. The firm agreed to a staggering $4.3 billion fine when Zhao entered his guilty plea.
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The sentence marks a significant moment for the crypto market, underlining the increasing scrutiny and regulatory demands facing industry leaders.