Binance founder sentenced

  • 1 min read

Binance founder Changpeng Zhao received a four-month prison sentence for his failure to establish sufficient anti-money laundering measures. Zhao, formerly the leader of the world's largest cryptocurrency exchange, admitted guilt in November 2023.

Prosecutors sought a three-year prison term, twice the 18-month sentencing guideline, citing the extensive scope and impact of Zhao's wrongdoing in their sentencing memorandum. They also argued that Zhao's sentence should reflect the significant harm to US national security resulting from his criminal actions.

According to prosecutors, Binance facilitated sanctions violations totaling over $898 million and breached US law on an unprecedented scale. Zhao and other Binance executives failed to adhere to US laws, including the Bank Secrecy Act (BSA), and neglected to implement adequate anti-money laundering measures, prioritizing Binance's growth and profitability above compliance with US laws.

Zhao has agreed to pay a $50 million fine, a fraction of his estimated $33 billion fortune amassed through Binance. Additionally, he has agreed not to appeal any sentence up to 18 months.

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