Coin Edition -
- U.S. District Judge Richard Jones in Seattle ordered Binance Founder Changpeng Zhao to a 4-month imprisonment.
- The judge states there is no evidence that Zhao was ever informed of Binance’s illegal activities.
- Zhao accepts responsibility for his actions, stating that the first step is recognizing his mistakes.
Binance Founder Changpeng Zhao, once considered the most powerful figure in the crypto world, was sentenced to four months in prison for violating anti-money laundering rules. In a Tuesday hearing, U.S. District Judge Richard Jones in Seattle ordered the sentence, which is significantly lesser than the three years sought by prosecutors.
In November 2023, Zhao pleaded guilty to breaching anti-money laundering laws and agreed to pay $4.3 billion in settlement. He was also accused of supporting the sale of child sexual abuse materials and received a large portion of ransomware proceeds.
Zhao highlighted the significance of accepting the responsibility minutes before the hearing. He cited,
“I think the first step to taking responsibility is to fully recognize the mistakes. Here, I failed to fully set up a [know-your-customer program. I also recognize the importance of having a robust KYC/[anti-money-laundering] program. That is why I directed Binance to cooperate with the U.S.’s investigation.”
During the hearing, the judge blamed Zhao for prioritizing Binance’s growth and profitability over US law compliance. Judge Jones added, “You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity.”
However, the judge stated there was no evidence that Zhao had ever been informed of illegal activity at Binance. Further, he acknowledged Zhao’s acceptance of responsibility. He posited,
“The court finds the defendant has accepted responsibility. Everything I see about you and your characteristics are of a mitigating nature.”
Subsequently, Zhao shared an X post announcing his four months of prison sentence. While many supported Zhao, others criticized him and questioned the court for not ruling Zhao a similar sentencing to that of FTX founder Sam Bankman Fried.
4 pic.twitter.com/TD13Xel3Zh— CZ