BREAKING: U.S Court Sentences Binance Founder, Changpeng Over Money Laundering,Others

Changpeng Zhao, the founder and former CEO of cryptocurrency exchange Binance, has been sentenced to four months in prison after pleading guilty to a money laundering charge.

This significant legal development occurred after Zhao, commonly known as CZ, admitted to willful violations of the Bank Secrecy Act by failing to establish an adequate anti-money laundering system within Binance.

The U.S. District Judge Richard Jones also confirmed that Zhao has complied with the court’s demand to pay $50 million in fines. Despite recommendations from a probation officer, Judge Jones decided against imposing an additional five months of probation.

This sentence comes after the U.S. Department of Justice charged Binance and Zhao in November 2023, resulting in a hefty $4.3 billion in fines and restitution for not registering as a money transmitting business. U.S. prosecutors originally sought a three-year prison sentence for Zhao, arguing that such a term would emphasize the seriousness of his offenses and serve as a deterrent to others.

Moreover, court documents revealed that Zhao had been restricted in his travel; he was ordered to surrender his Canadian passport and remain within the continental United States. He must also notify pretrial services of any internal travel plans and cannot seek a new passport without explicit court approval.

This case highlights ongoing concerns about illicit financial flows through cryptocurrency platforms. Recent reports indicated that $26 billion of suspicious transactions had passed through Binance Nigeria, exacerbating the economic challenges faced by the Nigerian government.