Binance’s Changpeng Zhao sentenced to 4 months’ prison in US for allowing money laundering
- The world’s largest cryptocurrency exchange allowed numerous trades that violated US sanctions, including ones involving Hamas, al-Qaeda and Iran
- US officials said Zhao deliberately looked the other way as people conducted transactions that supported child sex abuse, the illegal drug trade and terrorism
Former Binance CEO Changpeng Zhao was sentenced Tuesday to four months in prison for allowing rampant money laundering on the world’s largest cryptocurrency exchange.
Zhao pleaded guilty in November to one count of failing to take required anti-money-laundering measures and stepped down as Binance agreed to pay US$4.3 billion to settle related allegations.
US officials said Zhao deliberately looked the other way as people conducted transactions that supported child sex abuse, the illegal drug trade and terrorism.
“I failed here,” Zhao said before US District Judge Richard A. Jones issued the sentence. “I deeply regret my failure, and I am sorry.”
The three-year prison term prosecutors sought was more than twice the guideline range for the crime. If he did not receive time in custody for the offence, no one would, rendering the law toothless, they argued.