Changpeng Zhao Sentenced to 4 Months in Prison
The former CEO of Binance, Changpeng “CZ” Zhao, has been sentenced to four months in federal prison for violating US money laundering laws.
On April 30, Judge Richard Jones handed down the sentence in US District Court for the Western District of Washington.
Zhao had pleaded guilty in November for failing to establish an effective Anti-Money Laundering (AML) program during his time at the cryptocurrency exchange.
Prosecutors recommended a three-year sentence, while Zhao’s legal team requested probation. During the hearing, Judge Jones noted that there was no evidence that Zhao knew of any specific illegal activities happening at Binance.
Therefore, he disagreed with the prosecution’s request to increase the sentence from 18 months to three years.
In their final arguments, prosecutors claimed that Zhao’s approach at Binance was to ask for forgiveness rather than seek permission, and that he should not be allowed to profit from his actions.
