- Changpeng Zhao, former CEO and co-founder of Binance, has been sentenced to 4 months in prison
- He pleaded guilty to anti-money laundering law violations
- US prosecutors had recommended a 3-year sentence, but the judge shortened it to 4 months
Changpeng Zhao, the former CEO and co-founder of cryptocurrency exchange Binance, has been sentenced to four months in federal prison. This comes after he pled guilty to anti-money laundering law violations earlier this year.
Background on the Case
US prosecutors had recommended a 3-year sentence for Zhao based on his crimes and standing in the crypto market. However, the judge in Seattle agreed with the prosecutors’ verdict but shortened the time to just 4 months.
Zhao’s sentencing hearing was originally slated for February but was rescheduled to today. The prison sentence makes Zhao one of the richest people to ever serve time in a US federal prison, with a net worth of over $33 billion according to Forbes.
Zhao’s Prominence in Crypto
Within crypto, few exchanges were as prominent as Binance. It had long led the market before the outcome of years-long investigations into the platform late last year. Those findings ultimately led to Zhao’s departure as the company’s head.
Subsequently, Binance was charged with a $43 billion fine due to its various legal violations. As the former CEO and co-founder, Zhao has now been sentenced based on his role.
Before the legal troubles, Zhao was the public face of Binance and one of the most prominent figures in crypto. His sentencing represents a monumental downfall.
The Future of Binance
Since the legal action against Binance, Zhao has been removed from its operations. The company has continued under new leadership, though its reputation has been damaged.
It remains to be seen how Binance will fare moving forward without its iconic co-founder. But the sentencing brings closure to years of investigations and marks a new era for the exchange.
