Former Binance CEO Changpeng Zhao Sentenced to 4 Months in Prison for Involvement in Money Laundering

Liputan6.com, Jakarta – A federal judge has sentenced former Binance CEO Changpeng “CZ” Zhao to four months in prison for violating US money laundering laws. In an April 30 hearing in the U.S. District Court for the Western District of Washington, Judge Richard Jones sentenced Zhao to four months in prison.

Prosecutors had recommended the former Binance CEO serve a three-year sentence for his failure to maintain an effective Anti-Money Laundering (AML) program while at the crypto exchange, and he pleaded guilty in November. Shizu's lawyer asked that he be given probation.

Launch Cointelegraph, Wednesday (1/5/2024), Judge Jones said there was no evidence that Zhao had ever been informed about any specific illegal activity at Binance, thus rejecting the prosecutor's request to increase the sentence from 18 months to three years. In final arguments, government lawyers suggested that CZ's approach at Binance was to ask for forgiveness rather than permission, and that he should not profit from his actions.

“Detention is necessary to reflect the seriousness of the offence… A suspended sentence here would provide an incentive for others to break the law and do so on the largest possible scale,” said Kevin Mosley, who represents the prosecution.

Zhao's lawyer pointed to information in documents submitted to the court but sealed to the public as compelling factors for the judge to consider when imposing sentence. His legal team argued that Judge Jones could have imposed less than six months' probation, and claimed Zhao's wealth could make him a target in prison.

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