Binance founder Changpeng Zhao sentenced to 4 months in prison

Changpeng Zhao, founder of the Binance cryptocurrency exchange, was sentenced to four months in prison.

On April 30, Zhao appeared in court for sentencing. Department of Justice (DOJ) prosecutors wanted him to remain behind bars for three years, but his defense insisted on no prison time.

Judge Richard Jones rejected the Justice Department’s request to increase Zhao’s sentence. He said there was no evidence that the Binance founder was aware of specific illegal activities occurring on the exchange. The judge again rejected the Justice Department’s request to sentence Zhao to 36 months in prison.

The judge thanked the prosecution for its comprehensive report and predicted a possible sentence. Jones said he agreed with the prosecution’s opinion on many counts.

Last November, Zhao and the Binance exchange pleaded guilty to violating US anti-money laundering and sanctions regulations. As part of a comprehensive agreement with the government that allowed the cryptocurrency exchange to continue operations, Zhao agreed to resign as the exchange’s CEO, pay a $50 million fine and settle Binance’s $4.3 billion debt.

The founder of the world’s largest cryptocurrency exchange agreed to pay $175 million bail to remain free until sentencing. In November 2023, US prosecutors requested that Zhao be barred from leaving the country pending trial. According to prosecutors, the former president of Binance can live out the rest of his days in peace by sacrificing his security deposit.