Binance Founder CZ Sentenced To 4 Months In Prison: Report

Key Points:

• Binance’s co-founder, Changpeng Zhao, received a four-month prison sentence.
• Binance was fined $4.3 billion, with Zhao agreeing to a $50 million fine.

According to CoinDesk, Binance founder CZ sentenced to four months in prison for violating anti-money laundering laws. Zhao may be one of the richest people to ever be incarcerated in a US federal prison.

The co-founder and ex-CEO of the renowned cryptocurrency exchange, Binance, Changpeng Zhao (also known as CZ) has been sentenced to a four-month prison term. The decision came after Zhao pleaded guilty to violating anti-money laundering laws.

Binance Founder CZ Sentenced for Legal Violations

Despite US prosecutors recommending a three-year sentence, the sentencing was rescheduled and finally held recently. Binance, under Zhao’s leadership, was once a dominant force in the digital asset industry. However, lengthy investigations into the platform’s operations resulted in significant legal repercussions.

These investigations culminated in a $4.3 billion fine for Binance due to its legal violations, leading to Zhao’s departure from the company. The Seattle judge, while agreeing with the prosecutors on Zhao’s guilt, reduced the recommended sentence.

Readmore: Roger Ver Arrested In Spain, Charged With $48M Tax Fraud

Binance Faces Significant Legal Repercussions

Last year’s plea deal resulted in Zhao agreeing to a $50 million fine, which is just a minor portion of his estimated wealth. Reports on Monday suggested that with approximately $43 billion in assets, Zhao, following his sentencing, may be one of the richest people to ever be incarcerated in a US federal prison.

Following the legal proceedings, Zhao is no longer involved in Binance’s operations, a significant shift for the exchange given his previous role as its public face.

Earlier today, CoinCu reported that Roger Ver arrested in Spain for tax evasion. Accused of causing a $48 million loss to the IRS, Ver allegedly hid his personal and business bitcoin holdings.