The founder of Binance, a cryptocurrency exchange platform, Changpeng Zhao, has been sentenced to four months in prison.
Zhao facing the court for his verdict
It was on April 30 that Zhao appeared in court for his verdict. The case has garnered attention in financial industry media, with the Department of Justice (DOJ) prosecutors requesting a three-year prison sentence. However, his defense strongly opposed any form of imprisonment.
A marked disagreement with the DOJ
Judge Richard Jones stood out when he rejected the DOJ’s request to increase Zhao’s sentence. According to him, there was no evidence indicating that the Binance founder was aware of specific illegal activities taking place on his platform.
A verdict based on solid grounds
The judge thanked the prosecution for their detailed report while hinting at a possible sentence. “In many ways,” Jones said, “I agree with the prosecution.”
Zhao complies with regulations
It was last November that Zhao and Binance pleaded guilty to violations of U.S. anti-money laundering and sanctions regulations. As part of a comprehensive settlement with the government allowing the cryptocurrency exchange to continue operating, Zhao agreed to resign from his position as CEO of the exchange and pay a fine of $50 million, leaving Binance with a debt of $4.3 billion.
The founder of the largest cryptocurrency exchange platform also agreed to post a $175 million bond to remain free until his trial.