Billionaire Changpeng Zhao, founder of the world's largest cryptocurrency exchange Binance, was sentenced to 4 months in prison. This sentence turned out to be more lenient than prosecutors demanded. Written by UNN with reference to The Wall Street Journal.
Details
Zhao, 47, pleaded guilty to violating US anti-money laundering laws in November. He also agreed to step down as Binance's CEO, but continues to be the company's major shareholder.
I deeply regret my behavior and I am sorry. I fully realize the seriousness of my mistakes
During the sentencing, he nodded with a thoughtful expression as the judge delivered his ruling. The sentence follows a lengthy criminal investigation into Binance's activities in the United States and has revealed the attention of U.S. law enforcement to threats to national security and money laundering through cryptocurrencies.
The US government has stepped up its measures against the cryptocurrency industry, including sanctions to hinder the activities of exchanges and traders deemed to be serving cybercriminals and enemies of the country.
Prosecutors asked the judge to hand Zhao a three-year prison sentence, double the standard 18 months. They argued that by failing to implement an effective anti-money laundering system, Zhao allowed hackers, drug traffickers, and sanctions violators to use the exchange to transfer hundreds of millions of dollars, making a profit.
Zhao's intentional violation of U.S. law was not an accident or oversight. He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets
Zhao's lawyers insisted that instead of a prison sentence, he should receive a suspended sentence, arguing that the founder had no criminal record and had already suffered consequences, including resignation as CEO of Binance.
Zhao also agreed to pay a criminal fine of $50 million. However, under the terms of his plea agreement, he could avoid paying this amount if he paid a separate civil penalty of $150 million to the U.S. Commodity Futures Trading Commission in a related case.
Recall
The price of bitcoin remains relatively stable near the lower boundary of the trading range as investors continue to sell off cryptocurrency assets, especially in the United States.