Binance Founder Changpeng Zhao Sentenced to Four Months in Prison for Money Laundering

The 47-year-old entrepreneur was facing a potential three-year prison sentence, as recommended by U.S. prosecutors, but the court ultimately decided on a shorter term. Additionally, Zhao will not be subject to five months of probation, as previously recommended.

In a recent court ruling, Changpeng Zhao, the founder and former CEO of Binance, has been sentenced to four months in prison for violating the Bank Secrecy Act by willfully failing to establish an effective anti-money laundering system at Binance. Zhao, also known as CZ, pleaded guilty to the charges in November 2023 and has paid a fine of $50 million.

The 47-year-old entrepreneur was facing a potential three-year prison sentence, as recommended by U.S. prosecutors, but the court ultimately decided on a shorter term. Additionally, Zhao will not be subject to five months of probation, as previously recommended.

This development comes after Binance pleaded guilty to similar charges from the U.S. Department of Justice in November 2023 and was forced to pay $4.3 billion in fines and restitution for failing to register as a money transmitting business.

The case has sparked significant attention, with the Nigerian government also investigating Binance's activities in the country. In February, the Governor of the Central Bank of Nigeria (CBN) alleged that $26 billion passed through Binance Nigeria from unknown sources and users in one year, raising concerns about illicit financial flows.

Two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were arrested in Nigeria for alleged money laundering, with Anjarwalla later escaping from detention and fleeing to Kenya. Their trial is currently underway in a Federal High Court in Abuja.

This sentencing marks a significant milestone in the ongoing efforts to combat money laundering and illicit financial activities in the cryptocurrency industry.

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