Changpeng Zhao, the founder and former CEO of Binance, has been sentenced to four months in prison after pleading guilty to a money laundering charge in November 2023.
U.S. District Judge Richard Jones announced the sentence in court on Tuesday, stating that Zhao had also fulfilled the requirement to pay €46.64 million in fines.
The judge opted not to impose an additional five months of probation, contrary to the recommendation of the probation officer.
Zhao, known by the nickname CZ, admitted to breaching the Bank Secrecy Act by failing to establish an effective anti-money laundering system at Binance, the cryptocurrency exchange he helmed from July 2017 to November 2023.
In addition to Zhao’s conviction, Binance itself pleaded guilty to similar charges from the US Department of Justice in November 2023. As a result, the exchange giant was compelled to pay €4.01 billion in fines and restitution for its failure to register as a money transmitting business, according to Forbes.
Prosecutors in the United States had pushed for a three-year prison sentence for Zhao following his guilty plea. They argued that such a sentence, double the maximum 18 months recommended under federal guidelines, would underscore the seriousness of his deliberate violations and serve as a deterrent to others.
