Binance founder sentenced to four months in prison for money laundering
A judge in Seattle has sentenced Binance founder Changpeng Zhou, better known as CZ, to four months in effective prison for anti-money laundering violations.
Prosecutors had argued for three years in prison versus the sustended sentence request by lawyers for the defence. CZ’s sentence comes somewhere in between: four months in prison.
According to US media, CZ has estimated assets of $36 billion to $39 billion, making him the most wealthy man ever to end up in an American jail.
On top of his prison time, CZ must also pay a personal fine of $50 million, a pittance for the multimillionaire, and Binance will receive a corporate fine of $4.3 billion.
From Hamas over Al Qaeda to drug criminals, pedophile networks and shady Russian marketplaces, all used Binance for prohibited crypto transactions. This was revealed by the US investigation made public last November. CZ immediately resigned as CEO and agreed the aforementioned fines. The settlement should free Binance from additional investigations.
The sentence is much lighter than that for that other fallen crypto hero: Sam Bankman-Fried (SBF) who received a 25-year sentence.
According to the judge, CZ is unlikely to reoffend. He also charged that the Binance founder, who lives in Dubai, had come to the US voluntarily.
Posting on X, CZ thanked his supporters for their support. “I remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is super important,” he wrote.
The entrepreneur with Chinese roots indicated that his next project will revolve around education.
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