Binance's Founder Sentenced To 4 Months' Imprisonment For Money Laundering

Binance founder is sentenced to four months in prison for money laundering

Changpeng Zhao, the creator of Binance, was sentenced to four months in prison in Seattle, Washington, for money laundering, unauthorized money transmission, and other crimes.

According to Richard Jones, the presiding judge, Zhao prioritized “Binance's growth and profits over compliance with US laws and regulations" at a sentencing hearing on Tuesday.

According to US investigators, Zhao purposefully ignored transactions that fueled terrorism, illegal drug trafficking, and child sex abuse.

“I failed here. I deeply regret my failure, and I am sorry," Zhao told the court.

“I believe the first step of taking responsibility is to fully recognise the mistakes. Here I failed to implement an adequate anti-money-laundering programme. I realise now the seriousness of that mistake.”

The four-month term is less than the three-year maximum sought by prosecutors.

Prosecutors urged the judge that a harsh punishment would send a clear message to other would-be criminals.

“We are not suggesting that Mr. Zhao is Sam Bankman-Fried or that he is a monster,” Kevin Mosley, one of the prosecutors, said.

“But Zhao's conduct wasn't a mistake. This wasn't a regulatory 'oops.”

Zhao pleaded guilty to money laundering on November 21, 2023.

Binance also agreed to pay over $4 billion in fines and penalties.

Meanwhile, a Binance subsidiary in Nigeria is facing allegations for illegal foreign currency (FX) operations.

The federal government has charged Binance's regional manager for Africa, Nadeem Anjarwalla, and its head of financial crime compliance, Tigran Gambaryan, with tax evasion and money laundering.

On February 28, the duo was caught and imprisoned.

However, Anjarwalla escaped from detention in March.

Zhao's punishment comes less than a month after Sam Bankman- Fried, the former CEO and creator of Futures Exchange (FTX), was sentenced to 25 years in prison for scamming clients, investors, and lenders.