Former Binance crypto chief gets four months in prison after pleading guilty to money laundering

Binance's former chief Changpeng Zhao received a four-month prison term for breaching US anti-money laundering regulations at one of the world's largest cryptocurrency exchanges founded in 2017.

This came after he admitted guilt over his actions before US District Judge Richard Jones in Seattle. According to crypto market data firm CCData, Binance emerged as the leading cryptocurrency exchange globally in 2023, boasting an impressive $18.1 trillion in trading volume.

Approximately a month ago, another cryptocurrency entrepreneur, Sam Bankman-Fried, was sentenced to 25 years in prison for orchestrating a fraud that affected hundreds of thousands of customers and culminated in the collapse of FTX.

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Although prosecutors had initially sought a three-year sentence for Zhao, the judge imposed a shorter term. Despite the reduced sentence, prosecutors expressed satisfaction with the outcome of the extensive investigation into Binance. Zhao, a Canadian, had been residing outside the jurisdiction of the United States in the United Arab Emirates.

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Binance allegedly failed to prevent transactions connected to entities such as the Islamic State group, al-Qaeda, and the armed wing of Hamas, as per investigations conducted by two Treasury agencies.Zhao resigned from the company late last year while Binance agreed to a substantial $4.3 billion settlement in February.

Justice Department lawyers earlier said that Zhao's sentencing, "will not just send a message to Zhao but also to the world."In a post in 2023, Zhao said, "I made mistakes, and I must take responsibility."Binance was initially founded in China, however, it shifted its operations globally after a crackdown on the cryptocurrency sector by Beijing.

Zhao's defence attorneys had urged for probation without any prison sentence.Judge Richard A Jones who presided over the case said, “Your conduct does not warrant a 36-month sentence" and said that the former Binance founder is “a dedicated family man and a giving person”. The judge also hailed his “staggering accomplishment” in a bid to grow the crypto company.

(With inputs from agencies)