Close
Changpeng Zhao, the founder of Binance, was taken to prison. The crime of one of the prominent figures of the crypto world was money laundering. He has now moved to California.
CZ, the former CEO of Binance, has begun a four-month prison sentence in Lompoc, California, for failing to prevent money laundering at the exchange.
Zhao pleaded guilty and received a lighter sentence than the prosecutor requested. He also agreed to pay a $50 million fine.
Chang Peng Zhao, the billionaire founder of Binance, the world’s largest cryptocurrency exchange, was sentenced to prison. According to CNBC, Zhao is now behind bars in Lompoc, California. The news was confirmed by his defense team at Latham & Watkins. But what made the king of crypto go to jail?
In this cryptocurrency post, you can read about the money laundering allegations that destroyed the Binance empire.
In April, a US federal court in Seattle sentenced Zhao to four months in prison after pleading guilty to violating money laundering laws. The sentence is significantly shorter than the three years federal prosecutors had requested. Zhao’s defense team had pushed for a five-month trial period. While the recommended prison sentence was between 12 and 18 months.
After the sentencing, Zhao expressed regret for his actions and admitted that he had failed to implement strong anti-money laundering measures at Binance.
“I believe the first step in taking responsibility is to fully recognize mistakes.”
As part of his plea deal in November, Zhao stepped down as CEO of Binance and agreed to significant financial penalties. However, he still owns about 90% of the company.
In addition to their prison sentences, Zhao and Binance have agreed to pay significant penalties. They will pay a total of $4.35 billion to the U.S. Commodity Futures Trading Commission, including a $50 million fine.
Zhao’s incarceration makes him the second cryptocurrency billionaire after FTX founder Sam Benkman-Fried. This is another major development in the regulatory crackdown on the cryptocurrency industry.
