The founder of the world’s largest crypto exchange, Changpeng Zhao, has now been sentenced to four months in prison after violating US money laundering laws.
This is reported by several international media on Wednesday.
Prosecutors had originally asked for a sentence of three years, arguing that Zhao “allowed hackers, drug dealers and sanctions violators to use the crypto exchange to move hundreds of millions of dollars while making money,” according to the Wall Street Journal.
– I regret my behavior and I am sorry, the former crypto boss is said to have stated in the courtroom on Tuesday.
Zhao’s sentence comes just over a month after the founder of the crypto exchange FTX, Sam Bankman-Fried, was sentenced to 25 years in prison for large-scale fraud.
4.3 billion in fines
The verdict marks the end of a long investigation into crypto exchange Binance, which eventually pleaded guilty to violating US money laundering laws in a deal with the US Department of Justice last fall.
On that occasion, the crypto exchange agreed to pay a fine of 4.3 billion dollars.
At the same time, Zhao chose to resign from his position as managing director, and had to pay a fine of 50 million dollars himself. According to the Wall Street Journal, however, he will escape this fine if he pays a separate civil penalty of $150 million to an American regulatory agency.
Zhao is still listed as the crypto exchange’s largest shareholder.
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