[NEWS] Former Binance CEO CZ sentenced to four months in prison

On April 30, CZ (Changpeng Zhao), founder and former CEO of major cryptocurrency exchange Binance, pleaded guilty to violating U.S. law, including money laundering, and was sentenced to four months in prison.

The sentence handed down by the court this time was much shorter than the three-year prison sentence sought by the prosecution, and also shorter than the maximum one and a half years recommended by federal guidelines. Nevertheless, the prosecution commented, "It was a great day. Incarceration was crucial in this case, and we are pleased with the outcome."

The court criticized CZ for prioritizing the growth and profitability of Binance over compliance with U.S. law. The judge said, "You had the financial and human resources to ensure compliance with all regulations, but you missed that opportunity."

After receiving the sentence, CZ repeatedly apologized and said, "I believe the first step in taking responsibility is to fully acknowledge your mistakes. Here I failed to implement an appropriate anti-money laundering program. I recognize the seriousness of that mistake."

The sentence fell short of what prosecutors had requested.

CZ resigned as CEO of Binance in November last year to take responsibility and admit that Binance, which he founded in 2017, had evaded the money laundering requirements of the Bank Secrecy Act.

Last year, Binance agreed to a $4.32 billion fine, and CZ himself paid $50 million in criminal penalties.

Mark Bartlett, one of CZ's lawyers, said, "(He) wanted to make a difference in the world, but he made a mistake." Initially, the defense argued that the three-year prison sentence sought by the prosecution was inappropriate and sought a reduction in the sentence, including probation.

Bartlett continued, "CZ is 47 years old and this is his first offense. His life is built on three pillars: dedication to his family, developing technology as a force for positive change in the world, and serving the greater good."

It has not yet been decided whether CZ will appeal.

Reference:Report
Image: Shutterstock

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