Crypto exchange Binance founder Changpeng Zhao received a four-month prison sentence for violating the Bank Secrecy Act, despite cooperating with law enforcement and pleading guilty. The US Ministry of Justice demanded a longer sentence, but the court appointed a lenient measure.
Arrest of Zhao
Trial
On April 29, a meeting was held in Seattle, at which the world-famous Changpeng Zhao, the creator of one of the of the largest cryptocurrency platforms Binance, was sentenced to four months in prison. Although the basis for punishment was only one crime - violation of the Bank Secrecy Act, which theoretically threatened up to ten years in prison, Judge Richard Jones chose a fairly mild penalty.
Verdict and appeals
Despite calls from prosecutors to sentence Zhao to three years in prison because of the scale of his business, the court took into account the fact of admission of guilt and cooperation with the authorities during the investigation. The lawyers of the founder of Binance tried to avoid real deprivation of liberty for their client. Arguing this with his honest behavior and frankness towards government officials.
Context of the case
In November last year, Zhao resigned as CEO of Binance at the request of Ming US Justice, who investigated his stock exchange for money laundering and violations of the sanctions regime. At the same time, the company was threatened with a billion dollar fine. According to the investigation, the platform facilitated the circumvention of US sanctions against Russia and attracted money from terrorist groups.
Glossary
- Binance is a leading international cryptocurrency exchange founded by Changpeng Zhao in 2017.
- Changpeng Zhao is a Canadian businessman of Chinese origin, the founder of Binance.
- US Department of Justice - the US Department of Justice, the main federal executive branch of the US.
- CFTC - US Commodity Futures Trading Commission, derivative market regulator.
- SEC - US Securities and Exchange Commission, the main regulator of the stock market.
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What punishment did Binance founder Changpeng Zhao receive?
What exactly was Zhao convicted of?
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What other lawsuits have been filed against the crypto exchange Binance?
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Discussion of the topic – Binance founder Changpeng Zhao was sentenced to 4 months for money laundering
The founder and former CEO of the cryptocurrency exchange Binance, Changpeng Zhao, was sentenced to 4 months in prison for violating money laundering laws. The court session was held on April 29 in Seattle, USA.
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VictorB
It is interesting that the founder of one of the largest crypto exchanges in the world ended up behind bars 🤔 An unprecedented case in the crypto world.
AnnaK
I think this is a serious signal for the entire industry. No company is above the law, and not following the rules can be very costly 💰
PabloR
I believe that 4 months is a very mild punishment. Zhao should have served longer for such a serious offense 👮♂️ Why was the referee so lenient?
SarahM
And was Binance really violating sanctions against Russia? 🤔 This is a very serious charge, and then the punishment should be more severe.
OldGrouchyMan
These new technologies are only trouble 😒 Nothing good will come of them. Better to stay away from all this crypto madness.
JanK
I wonder what will happen to Binance now? Will they continue to operate, or will they still be closed? 🤔 This could have a big impact on the entire crypto market.
MiaSZ
In my opinion, this whole incident shows how unregulated the crypto industry still is 😕 More rules and controls are needed to prevent such violations in the future.
AlexP
I wonder if this will affect investor confidence in Binance and other crypto exchanges? 🤔 After all, reputation is very important for success in this field.