Changpeng Zhao Sentenced to Four Months in Prison for Money Laundering
Changpeng Zhao, the former CEO and founder of Binance, the world's largest cryptocurrency exchange, was sentenced to four months in prison on Tuesday. This decision came after he admitted to violating US laws designed to prevent money laundering. The sentence was handed down in Seattle.
The sentence was significantly less than the three years originally sought by prosecutors. Zhao, once a prominent figure in the cryptocurrency world, is now the second major crypto leader to face prison time. However, his punishment is considerably lighter compared to Sam Bankman-Fried, another crypto executive who received a 25-year sentence for a larger crime involving $8 billion.
The judge presiding over the case criticized Zhao for prioritizing business growth over compliance with US regulations. Despite the seriousness of the charges, Zhao remained stoic upon hearing his sentence. He attended the court hearing in a navy blue suit, accompanied by his mother and other family members. His lawyers had hoped for a sentence of probation.
While US Attorney Tessa Gorman hailed the outcome as a significant victory, critics argued that the sentence was too lenient. Dennis Kelleher, from the advocacy group Better Markets, commented that the light sentence sent a message that "crime pays," as Zhao would retain his wealth.