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Binance founder is sentenced to 4 months in prison on money-laundering charges

·1 min

Changpeng Zhao, the founder of a prominent cryptocurrency exchange, has been sentenced to four months in prison for money-laundering charges. The sentence is a lighter punishment than what prosecutors had sought. Zhao, also known as CZ, apologized for his mistakes as CEO of the crypto exchange before the sentencing hearing. Binance, the company Zhao founded, agreed to pay over $4 billion in fines and penalties as part of a settlement with the US government. Zhao, who has a personal fortune of nearly $40 billion, will step down as CEO and pay $200 million in fines. The sentencing follows an investigation that revealed Binance’s involvement in illicit activities, including child abuse, drug transactions, and terrorist financing. The Department of Justice has taken a stronger stance against financial crimes and cryptocurrencies. Critics argue that the punishment is insufficient in combating money laundering.