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Founder of biggest cryptocurrency exchange, Binance, sentenced to prison

Founder of biggest cryptocurrency exchange, Binance, sentenced to prison

Zhao, who was once a top figure in the cryptocurrency world, is now the second major crypto leader to face prison time

Danny D'Cruze
Danny D'Cruze
  • New Delhi,
  • Updated May 1, 2024 7:30 AM IST
Founder of biggest cryptocurrency exchange, Binance, sentenced to prisonChangpeng Zhao, founder of Binance

.Changpeng Zhao, known as "CZ," the former CEO and the founder of Binance, the biggest cryptocurrency exchange globally, was sentenced to four months in prison on Tuesday. This decision came after he admitted to breaking US laws that prevent money laundering. The sentence was given in Seattle. The sentence was much less than what prosecutors originally wanted — three years.

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Zhao, who was once a top figure in the cryptocurrency world, is now the second major crypto leader to face prison time. His punishment, however, is lighter compared to Sam Bankman-Fried, another crypto boss, who got 25 years for a larger crime involving $8 billion.

The judge criticized Zhao for focusing more on growing his business than following US regulations. Despite the severity of the accusations, Zhao showed no reaction when he heard his sentence. He attended the court hearing in a navy blue suit, accompanied by his mother and other family members. His lawyers had hoped he would only receive probation.

While U.S. Attorney Tessa Gorman celebrated the outcome as a significant success, critics argued the sentence was too mild. Dennis Kelleher from the advocacy group Better Markets commented that the light sentence sent a message that "crime pays," as Zhao would still retain his wealth.

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With agency inputs

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ABOUT THE AUTHOR

Danny D'Cruze
Danny D'Cruze

When Danny is not tinkering with his latest gadget you'll find him in the kitchen whipping up a new recipe. To balance out all the eating, he enjoys working out and taking long walks.

When he's not immersed in his hobbies, Danny is a social butterfly who loves meeting new people and getting to know them over a good conversation. He's also an avid gamer who can spend hours lost in a virtual world, and a dance enthusiast who's ever ready to hit the dance floor.

Danny loves long drives and podcasts. He's always eager to share his latest discovery and can talk for hours about his favorite shows. 

Published on: May 1, 2024 7:30 AM IST