Binance's Founder CZ Sentenced to 4 Months in Prison
Binance founder and former CEO Changpeng 'CZ' Zhao was sentenced to four months in prison for breaking US anti-money laundering laws at the world's largest cryptocurrency exchange.
- Zhao received a significantly reduced sentence of four months from a Seattle federal court, much less than the three-year term federal prosecutors were pursuing.
"There's no evidence that the defendant was ever informed [of illegal activity at Binance...] The court finds the defendant has accepted responsibility. Everything I see about you and your characteristics are of a mitigating nature," the judge said to Zhao before handing down the sentence.
- "I think the first step to taking responsibility is to fully recognize the mistakes. Here, I failed to fully set up a [KYC program]. I also recognize the importance of having a robust KYC/AML program. That is why I directed Binance to cooperate with the U.S.'s investigation," Zhao said before hearing the judge's decision.
- In November, Zhao pleaded guilty to failing to implement necessary anti-money-laundering measures at Binance. He also resigned as Binance CEO and committed to a $4.3 billion payment to settle related allegations.
