Binance Founder, Changpeng Zhao, Makes History In US Prison

Binance Founder, Changpeng Zhao, has been sentenced to four months in prison for violating U.S. money laundering laws making him the richest prisoner.

This marks another significant legal setback for the cryptocurrency industry amidst global regulatory crackdowns.

Changpeng Zhao, the co-founder and former CEO of Binance, the world’s largest cryptocurrency exchange, has been sentenced to four months in prison by a U.S. court in Seattle for violating money laundering laws making him the richest prisoner.

VerseNews gathered that despite prosecutors pushing for a three-year sentence, District Judge Richard Jones decided on the shorter term for Zhao, who now becomes one of the richest prisoners globally with an estimated fortune of $43 billion.

Zhao’s conviction is part of a broader crackdown on irregularities in the cryptocurrency sector.

His sentencing follows the high-profile case of Sam Bankman-Fried, another cryptocurrency mogul, who was sentenced to 25 years for embezzling $8 billion from his bankrupt exchange, FTX. Zhao pleaded guilty in November to failing to implement adequate anti-money laundering measures at Binance, which has agreed to pay $4.3 billion to settle related charges.

This case spotlights the ongoing regulatory and legal challenges facing the cryptocurrency industry, as governments worldwide intensify scrutiny.

Zhao, who had been free on a $175 million bond, expressed regret for his actions, acknowledging the severity of his oversight in not maintaining a robust anti-money laundering program.

The UK and Nigeria are among the countries ramping up efforts to combat the misuse of cryptocurrencies for illegal activities, including drug trafficking and terrorism.