The founder of the world's largest crypto exchange has been sentenced to four months in prison for allowing criminals to launder money on his platform.

Changpeng Zhao resigned from Binance in November and pleaded guilty to violating US money laundering laws.

Binance was ordered to pay a $4.3bn (£3.4bn) after a US investigation found it helped users bypass sanctions.

Prosecutors had sought a three-year sentence for the former Binance boss.

At a sentencing hearing on Tuesday in Seattle, Judge Richard Jones said Zhao put "Binance's growth and profits over compliance with US laws and regulations", according to the Verge.

US officials said in November that Binance and Zhao's "wilful violations" of its laws had threatened the US financial system and national security.

"Binance turned a blind eye to its legal obligations in the pursuit of profit," said Treasury Secretary Janet Yellen.

"Its wilful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform."

Commonly called "CZ", Zhao has a $33 billion fortune, according to Forbes magazine.

Nigerian authorities are currently investigating the company, registered in the Cayman Islands, as well.

Tigran Gambarayan, who is in charge of financial crime compliance at Binance, denied money laundering charges in a Nigerian court in early April.

Fellow executive Nadeem Anjarwalla, detained in Nigeria alongside Mr Gambarayan in February, escaped custody in March.

Zhao's sentencing comes shortly after Sam Bankman-Fried was sentenced to 25 years in prison for fraud committed at his rival crypto platform, FTX.

Widely known as the "crypto king", Bankman-Fried was found to have stolen billions from customers ahead of the firm's failure.

The Justice Department said its investigation into Binance also found the exchange made it easy for criminals to move money.

https://www.bbc.co.uk/news/technology-68930465

4 months? The billions of dollars fine is obviously the reason for the short sentence.

jmoore:
4 months? The billions of dollars fine is obviously the reason for the short sentence.

Likely plea bargaining things

two months shorter than bobrisky

I hope it’s a suspended sentence or they release him immediately on parole. CZ is a great guy who has done a lot for crypto. The entire crypto world stand firmly with CZ!

seunmsg:
I hope it’s a suspended sentence or they release him immediately on parole. CZ is a great guy who has done a lot for crypto. The entire crypto world stand firmly with CZ!

Doesn't sound like a "great guy" to me. Unless the dictionary meaning of great is different now.

I am assuming Judge Richard Jones and US officials are sane and competent to have said all they did about Zhao below.

At a sentencing hearing on Tuesday in Seattle, Judge Richard Jones said Zhao put "Binance's growth and profits over compliance with US laws and regulations", according to the Verge.

US officials said in November that Binance and Zhao's "wilful violations" of its laws had threatened the US financial system and national security.

So many idiots in Nigeria will criticize Nigerian government for going after Binance and the likes. If US could state that Binance activities has seriously compromised the financial system and security of US economy, just pause for a seconds and imagine the kind of damages they have cost Nigerian economy with the rate of looting happening here and easy ways through which looters are Laundering money and seriously killing our financial system.
Just imagine the damages and I will suggest the FG should apply for his extradition to Nigerian after his jail term in US and we could as well fine him some billions of dollars as damages.

Zhao Zhao Escobar

Like for Zhao share for Escobar

kolaaderin:


So many idiots in Nigeria will criticize Nigerian government for going after Binance and the likes. If US could state that Binance activities has seriously compromised the financial system and security of US economy, just pause for a seconds and imagine the kind of damages they have cost Nigerian economy with the rate of looting happening here and easy ways through which looters are Laundering money and seriously killing our financial system.
Just imagine the damages and I will suggest the FG should apply for his extradition to Nigerian after his jail term in US and we could as well fine him some billions of dollars as damages.

My thinking exactly. Don't forget those using binace to sponsor terror and compromise our national security.

It is sad that the USA can act swiftly, with the backing of majority of her citizens, whereas the reality of Nigeria is very different showing how divided against ourselves we are even over issues concerning our own security and wellbeing.

Obi, Atiku and co will turn emergency human rights advocate to be shouting all the way to to the moon pretensiously if same treatment was meted to a Binance boss in Nigeria.

Nigerian money lauderers, terror sponsors, scammers and co who love what binance does for them, will jump in defence of crooked binance bosses and even carry protest placards in their support.

We are not close to attaining nationhood and, in my opinion, never will be while we remain firmly practising 'one Nigeria' governance.

FreeStuffsNG:
Likely plea bargaining things

Ok I get it

Like Bola Ahmed forfited some cash for heroine trafficking?

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WizardOfNG:

My thinking exactly. Don't forget those using binace to sponsor terror and compromise our national security.

It is sad that the USA can act swiftly, with the backing of majority of her citizens, whereas the reality of Nigeria is very different showing how divided against ourselves we are even over issues concerning our own security and wellbeing.

Nigerian money lauderers, terror sponsors, scammers and co who love what binance does for them, will jump in defence of crooked binance bosses and even carry protest placards in their support.

We are not close to attaining nationhood and, in my opinion, never will be while we remain firmly practising 'one Nigeria' governance.

Your Tinubu APC government keeps paying ransom to terrorists to free kidnapped students. You think the terrorists use the ransom to eat suya?