Binance Founder CZ Receives Four-Month Prison Term Instead of 36 Months
Changpeng Zhao (CZ), the founder of Binance, was handed a four-month prison sentence on Tuesday, April 30, 2024, following his admission of guilt to charges related to facilitating money laundering at his cryptocurrency exchange.
This verdict, issued in a Seattle federal court, came as a surprise departure from the three-year term initially sought by federal prosecutors. In contrast, the defense had proposed a mere five months of probation. Notably, the sentencing guidelines had originally recommended a term of 12 to 18 months behind bars.
“I’m sorry” CZ told the judge before the sentencing, as reported by Reuters. “I believe the first step of taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program … I realize now the seriousness of that mistake.”
The sentencing recommendation for CZ, stemming from a plea agreement, underscores the gravity of his offenses and the urgent need for deterrence. Despite guidelines suggesting a 12 to 18-month term, the recommendation advocated for the maximum penalty: three years in prison and a substantial $50 million fine.
As the dust settles on this legal saga, the once-reigning figure in the crypto world appears to be relinquishing his throne. With his departure, the future of Binance now rests in the hands of his successor, Richard Teng, who has been steering the ship amid regulatory challenges. Recent developments, such as securing a Virtual Asset Service Provider (VASP) license from the UAE regulator VARA in Dubai, signal resilience and adaptation in the face of adversity.
