BREAKING: Binance Founder, Zhao sentenced to 4 months in prison

Founder and former Binance CEO, Changpeng Zhao has been sentenced to four months imprisonment

Zhao pleaded guilty in November 2023 to a money laundering charge.

Zhao, who went by the nickname CZ, has also satisfied the requirement of him to pay $50 million in fines, U.S. District Judge Richard Jones said in court Tuesday.

The judge also won’t impose five months of probation as was recommended by the probation officer.

The 47-year-old admitted to violating the Bank Secrecy Act by willfully failing to set up an effective anti-money laundering system at Binance, the cryptocurrency exchange he founded and ran as CEO from July 2017 to November 2023.

Binance also pleaded guilty to similar charges from the US Department of Justice in November 2023 and was forced to pay $4.3 billion in fines and restitution for failing to register as a money transmitting business, Forbes reported.

U.S. prosecutors had urged the court to sentence Zhao to three years in prison after he pleaded guilty to violating laws against money laundering.

They argued that sentencing Zhao to twice the maximum 18 months recommended under federal guidelines would reflect the magnitude of his willful violations, and send a message that would deter others.