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- Binance founder CEO Changpeng Zhao (CZ) gets four months imprisonment for anti-money laundering failures.
Former Binance CEO Changpeng Zhao, or CZ, will serve a four-month prison term for failing to implement adequate anti-money laundering controls at the cryptocurrency exchange.
This sentence, issued in Seattle, is much lighter than the three-year term prosecutors had requested for what they considered a severe violation of the Bank Secrecy Act (BSA).
During the sentencing hearing, Judge Richard Jones noted CZ’s background as a philanthropist and first-time lawbreaker, significantly influencing his decision.
Before the hearing, Judge Jones reviewed numerous letters portraying CZ positively, emphasizing his charitable efforts and personal integrity.
CZ becomes the first CEO imprisoned under the BSA, signaling the gravity of Binance’s oversight in anti-money laundering practices.
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Despite his contributions to global charity, prosecutors argued that these actions do not excuse legal violations, a point the defense contested by highlighting his voluntary surrender and cooperation.
Judge Jones acknowledged the overwhelming support for CZ, which was evident from the many letters he received describing him as a compassionate yet flawed individual.
CZ’s defense stressed his clean legal history and proactive engagement with the legal process, including his decision to face charges despite living in a non-extradition country.
The judge clarified that CZ’s role at Binance did not exempt him from following the law, pointing out that his wealth and status do not place him above legal responsibilities.
Despite the prison term, CZ plans to continue his philanthropic work, particularly his global education initiative for children.
This indicates that this setback is likely only a brief interruption in his career.
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