On April 30, 2024, Changpeng Zhao (CZ), founder of Binance, was sentenced to four months in prison by a U.S. federal court in Seattle for charges including violations of anti-money laundering laws and international financial sanctions. Prosecutors had sought a 36-month sentence, but the judge reduced it based on CZ's cooperation and expressions of remorse .
Judge Richard Jones stated that CZ "prioritized Binance's growth and profits over compliance with U.S. laws," but reduced the sentence due to his guilty plea, 161 letters of support, and cooperation with authorities .
Binance was accused of failing to report over 100,000 suspicious transactions linked to terrorist groups (e.g., Hamas, ISIS) and facilitating illegal activities such as child sexual abuse material sales. CZ admitted to lacking an effective anti-money laundering program and paid a $50 million personal fine .
CZ's four-month sentence contrasts sharply with the 25-year prison term for FTX founder Sam Bankman-Fried (SBF). The judge highlighted that SBF's case involved direct fraud and a lack of remorse, while CZ's centered on compliance failures .
CZ was released on September 29, 2024, but Binance continues to face civil lawsuits from the SEC. Nigerian authorities are also investigating the exchange for money laundering .
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