BREAKING: Former Binance CEO CZ Behind Bars: Sentenced To Jail For 4 Months
01 May 2024 - 5:23AM
NEWSBTC
In a significant development for the crypto industry, Changpeng
Zhao, commonly known as CZ, the founder of Binance, the world’s
largest cryptocurrency exchange, has been imprisoned for four
months. The sentencing follows his guilty plea to charges
related to enabling money laundering activities within his crypto
exchange. The verdict was delivered in Seattle federal court and
marks the culmination of US authorities’ multiyear investigation
into Binance. Lighter Sentence For Binance Founder The sentence
handed down to Zhao was notably less severe than the three-year
prison term sought by federal prosecutors. In contrast, the defense
had requested five months of probation, ultimately given the
outcome wanted. Related Reading: Crypto Funds Mark 3rd
Consecutive Weeks Of Outflows With $435 Million In Withdrawals
Under the terms of a settlement reached in November of 2023, Zhao
agreed to step down as CEO of Binance, as part of an agreement to
resolve the investigation. The probe primarily focused on
allegations that Binance failed to implement an effective
anti-money laundering program, as the Bank Secrecy Act
required. Regulatory Pressure Mounts Zhao was also
accused of knowingly allowing Binance to process transactions
involving funds derived from unlawful activities, including
transactions between US citizens and individuals residing in
sanctioned jurisdictions. As part of the resolution, Binance was
ordered to pay an imposing $4.3 billion fines and forfeiture.
Additionally, Changpeng Zhao personally agreed to pay a substantial
$50 million fine, underscoring the severity of the charges and the
commitment to accountability. Related Reading: Crypto Analyst
Reveals Why $59,800 Is An Important Level For Bitcoin The legal
challenges for Binance do not end there. The company faces separate
lawsuits from the US Securities and Exchange Commission (SEC) and
the Commodity Futures Trading Commission (CFTC) for alleged
mishandling of customer assets and operating an illegal,
unregistered exchange within the United States. As of this
writing, the exchange’s native token, Binance Coin (BNB), is
trading at $573, down over 3% in the last 24 hours and 7% in the
last seven days. Featured image from Bloomberg, chart from
TradingView.com
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