Binance Founder Changpeng Zhao Sentenced To 4 Months In Prison

Binance founder Changpeng Zhao has been sentenced to four months in prison after pleading guilty to charges related to enabling money laundering through his cryptocurrency exchange. CNBC reports: The sentence handed down to Zhao in Seattle federal court was significantly less than the three years that federal prosecutors had been seeking for him. The defense had asked for five months of probation. The sentencing guidelines called for a prison term of 12 to 18 months. In November, Zhao struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world's largest cryptocurrency exchange. As part of the settlement, Zhao stepped down as the company's CEO.

Zhao, who wore a dark navy suit with a light blue tie to court, is accused of willfully failing to implement an effective anti-money laundering program as required by the Bank Secrecy Act, and of allowing Binance to process transactions involving proceeds of unlawful activity, including between Americans and individuals in sanctions jurisdictions. The U.S. ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a $50 million fine.

The wages of Sin

[Local ID10T]

4 months at club fed... billions in profits stashed away safely

Re:

[ShanghaiBill]

4 months at club fed...

The severity of punishment has little deterrent value.

A high probability of getting caught is much more effective.

We should spend less on prisons and more on enforcement.

Welp

[rmdingler]

The U.S. ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a $50 million fine.

Changpeng Zhao's reputed net worth is just north of US$30 billion. $50 million, to him, is like what you'd tip the paperboy in another lifetime.

Ye olde two tiered justice system at work.

Re:

[account_deleted]

Comment removed based on user account deletion

Re: Welp

[hdyoung]

His net worth probably includes the value of Binance. Which just got hit with a 5 billion dollar fine, right? And thats real USD that Uncle Sam is gonna require, not Monopoly money cryptocurrency. So, that 5 billion is probably largely out of his pocket as well. Add in the fact that his reputation is shattered and its unlikely anyone will let him stand up another big business, and the overall effect is that hes largely neutralized. Hes gonna be like Holmes. Still personally wealthy but out of the game. Perm

Dunning-Krugerrands used for money laundering?

[Opportunist]

Nooooo, say it ain't so! That's unpossible!

CEO of most sucessful exchange jailed

[diffract]

Yet most high figures of exchanges and lending platforms that failed and lost users' funds are free to roam around.