Binance founder Changpeng Zhao sentenced to four months imprisonment
In the most well-known cryptocurrency case, since Sam Bankman-Fried was imprisoned, the founder of the company Binance was sentenced to four months in US prison on Tuesday after entering a guilty plea to money laundering charges.
As part of an agreement with US authorities, Canadian Changpeng Zhao left his position at the biggest Bitcoin exchange platform in the world towards the end of last year.
Two Treasury agency investigations claim that Binance was unable to stop transactions by groups such as the Islamic State group, al-Qaeda, or Hamas' military wing.
Zhao admitted to breaking US anti-money laundering regulations, and Binance decided to resolve the legal matter in February by paying $4.3 billion.
In a court file, prosecutors requested that the judge sentence the defendant to three years in prison for a crime for which probation is usually the appropriate punishment.
“He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” Justice Department lawyers said of Zhao in a sentencing memorandum.
“The sentence in this case will not just send a message to Zhao but also the world.”Zhao's attorneys responded in a document, arguing that probation is a fair, suitable, and compliant punishment.
They mentioned Zhao's accountability as well as what they claimed to be his charitable background.
“I made mistakes, and I must take responsibility,” Zhao, who lives in the United Arab Emirates, said in a post on X, formerly Twitter, in November.
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