Mathieu
# BINANCE FOUNDER CHANGPENG ZHAO SENTENCED FOR MONEY LAUNDERING
The founder of Binance, Changpeng Zhao, has been sentenced to four months in prison for failing to implement sufficient anti-money laundering measures. Zhao, who previously led the world’s largest cryptocurrency exchange, admitted his guilt in November 2023.
# SIGNIFICANT VIOLATION OF US LAW
Judge Richard Jones criticized Zhao for prioritizing Binance’s growth and profits over compliance with US laws and regulations. Although Jones believes Zhao is unlikely to commit further offenses, the severity of the crime is noteworthy.
# BINANCE SCANDAL UNFOLDS
Binance was found to have violated US law on an unprecedented scale, allowing sanctions violations amounting to over $898 million. Iranian customers alone conducted transactions of at least $1.1 million with US customers in breach of sanctions, with other sanctioned countries like Cuba and Syria also engaging in transactions.
# PROSECUTORS SEEK HARSH SENTENCE
Prosecutors sought a three-year prison term for Zhao, emphasizing the extensive impact of his misconduct. They argued that Zhao’s sentence should reflect the significant harm caused to US national security by his criminal actions.
# CONTROVERSIAL JUDGEMENT
In response, Zhao’s lawyers contended that he should not receive a jail sentence, pointing out that no defendant in a comparable Bank Secrecy Act case had ever been incarcerated. They highlighted Zhao’s voluntary guilty plea and Binance’s initiative to rectify its anti-money laundering processes.
# ZHAO’S REPUTATION IN THE CRYPTO WORLD
Zhao is known in the crypto world for his bold stance and reputation for disregarding US laws. Despite his legal troubles, Zhao’s influence is felt as a key figure in the industry, having founded Binance in 2017.
# FINANCIAL CONSEQUENCES
Zhao has agreed to pay a $50 million fine, a fraction of his estimated $33 billion fortune accumulated through Binance. He has also accepted not to appeal any sentence of up to 18 months.
Citations:
– [Bloomberg](https://www.bloomberg.com/news/features/2022-06-23/binance-bnb-ceo-moves-to-dubai-as-us-regulators-target-the-crypto-exchange?sref=M8H6LjUF)
– [Sentencing Memo](https://storage.courtlistener.com/recap/gov.uscourts.wawd.328570/gov.uscourts.wawd.328570.78.0.pdf)
– [Zhao’s Sentencing Memo](https://storage.courtlistener.com/recap/gov.uscourts.wawd.328570/gov.uscourts.wawd.328570.81.0.pdf)
