coinculture.com
Changpeng Zhao, the former CEO of Binance, has been sentenced to four months in prison by a U.S. federal judge for breaching money laundering laws. Judge Richard Jones handed down the sentence in an April 30 hearing in the U.S. District Court for the Western District of Washington.
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Zhao pleaded guilty in November to failing to maintain an effective Anti-Money Laundering (AML) program during his tenure at Binance. Prosecutors initially sought a three-year prison term, while Zhao’s defence requested probation.
During the hearing, Judge Jones emphasised that there was no evidence Zhao was aware of specific illegal activities at Binance, countering prosecutors’ bid for a longer sentence. The government’s attorneys argued that Zhao’s approach had been to seek forgiveness rather than permission, asserting that a prison sentence was necessary to deter similar behaviour in the future.
Zhao’s legal team cited sealed court documents as a compelling factor for the judge to consider, advocating for a probationary sentence of less than six months due to concerns about Zhao’s safety in prison. Before his sentencing, Zhao expressed remorse for his actions and acknowledged Binance’s failure to implement a robust AML program.
Zhao resigned as CEO of Binance following his plea deal and agreed to a $4.3 billion settlement with U.S. authorities to resolve civil regulatory matters. This plea deal does not affect ongoing civil lawsuits filed by the U.S. Securities and Exchange Commission against Binance, Binance.US, and Zhao in June 2023.
Despite the legal proceedings, Zhao has kept a low public profile since stepping down as CEO, focusing instead on launching Giggle Academy – an educational initiative related to crypto and blockchain for young people.
Alex Mashinsky will be one of the next significant figures to face charges after Bankman-Fried and Zhao. The former Celsius CEO’s criminal trial in the United States is scheduled to begin in January 2025.