Binance Founder Changpeng Zhao Sentenced to 36 Months in Prison for Money Laundering Violations: Reports

Jakarta –

Binance founder Changpeng Zhao was sentenced to 36 months or three years in prison after pleading guilty to violating money laundering laws in the United States.

Zhao, better known as CZ, will serve his sentence beginning April 30 in Seattle. He has resigned as CEO of Binance, the world’s largest crypto exchange, since November 2023, just when he and Binance admitted their mistakes.

At that time, Binance agreed to pay a fine of $4.32 billion, as reported by detikINET from Reuters, Thursday (25/3/2024).

“Given the depth of Zhao’s violation of US law and its consequences, a maximum sentence of 36 months was imposed,” said prosecutors at the US District Court for the Western District of Washington.

Federal sentencing guidelines imposed an 18-month prison sentence for CZ, who later agreed not to appeal. Until his sentence is served, he remains free to move America on $175 million bail.

US authorities said Binance failed to report more than 100 thousand suspicious transactions related to terrorist groups such as al Qaeda and ISIS. Prosecutors alleged that Binance facilitated the sale of child sexual abuse material and received large ransoms.

CZ agreed to pay $50 million​​​​ and cut ties with Binance, the company he founded in 2017. In return, Binance had to pay a fine of $1.81 billion​​​​ and resettlement $2.51 billion.

As previously reported, Zhao, who is estimated to be worth more than $23 billion, pleaded guilty to failing to maintain an effective anti-money laundering program. Zhao confirmed in a post on X (formerly known as Twitter) that he had stepped down as CEO.

“It wasn’t easy to let go emotionally. But I knew it was the right thing to do,” Zhao said. “I made a mistake, and I have to take responsibility. This is the best thing for our community, for Binance, and for me.”

Watch video”Binance and Foreign Exchanges are the causes of state loss“

(asj/afr)