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The founder of the world’s largest cryptocurrency exchange, Binance, Changpeng Zhao, has been sentenced to four months in prison on charges related to money laundering, a significant deviation from the three years sought by prosecutors.
The sentencing took place in a United States federal court in Seattle.
Zhao, known as CZ, faced charges not directly for money laundering, but for failing to establish an adequate anti-money laundering program at Binance. This case marks a pivotal moment in the U.S. government’s crackdown on financial crimes within the cryptocurrency sector.
In a heartfelt apology prior to his sentencing, Zhao expressed his remorse, saying, “Words cannot explain how deeply I regret my choices that result in me being before the Court.”
He stated in a letter to the judge, further assuring that, “Rest assured that it will never happen again.”
As part of a broader settlement with the federal government last fall, Binance consented to pay over $4 billion in fines and penalties. The company acknowledged its role in anti-money laundering violations, unlicensed money transmitting, and sanctions breaches.
