Binance founder Changpeng Zhao gets four month prison term

The founder of crypto exchange Binance, Changpeng "CZ" Zhao, has been sentenced to four months in prison in the US after pleading guilty to violating anti-money laundering requirements.

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Binance founder Changpeng Zhao gets four month prison term

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Federal prosecutors had been seeking three years, double the sentencing guidelines, while Zhao's lawyers had argued for probation.

Zhao pleaded guilty in November as part of deal between Binance and the Department of Justice, Treasury Department and CFTC to settle allegations that the exchange failed to maintain a proper anti-money laundering programme, operated an unlicensed money-transmitting business and violated sanctions law.

The world's largest crypto exchange agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion.

Meanwhile, Zhao pleaded guilty to violating the Bank Secrecy Act and causing a financial institution to violate the same act. He agreed to pay a $50 million fine, quit as CEO and be barred from any involvement in running Binance, which he founded in 2017.

In a statement to media, Binance says it is “proud of the culture of compliance, security, and transparency we have created over the past several years, and we look forward to building on that culture as we continue to evolve.”

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