Binance founder faces prison sentence on money-laundering violation

Changpeng Zhao, the founder of Binance exchange, has been sentenced to four months in prison, a lighter penalty than other crypto executives have faced since the industry’s collapse in 2022.

Zhao pleaded guilty last year to a money-laundering violation, acknowledging that his company allowed terrorist groups and other criminals to access its platform.

Defense lawyers asked for probation without any prison time, while prosecutors requested a three-year sentence, calling it an “unprecedented” crime. The judge who oversaw the case in US District Court in Seattle, said that Zhao had taken responsibility for his offenses and was unlikely to break the law again.

This was the second high-profile penalty this year in the Justice Department’s campaign to root out criminal behavior in the crypto industry.

In March, Sam Bankman-Fried, the founder of the collapsed FTX exchange and Zhao’s onetime business rival, was sentenced to 25 years in prison for fraud. Zhao and Binance CEO Binance were negotiating with federal prosecutors to avoid facing criminal charges.