SEATTLE, USA – Changpeng Zhao, the founder of Binance, has been sentenced to four months in prison for money laundering, unlicensed money transmitting and violations in Seattle, United States (US).
At a sentencing hearing on Tuesday, Richard Jones, the presiding judge, said Zhao put “Binance’s growth and profits over compliance with US laws and regulations”.
According to US officials, Zhao intentionally turned a blind eye to transactions that financed terrorism, the illegal drug trade, and child sex abuse.
“I failed here. I deeply regret my failure, and I am sorry,” Zhao told the court.
I believe the first step of taking responsibility is to fully recognise the mistakes. Here I failed to implement an adequate anti-money-laundering programme. I realise now the seriousness of that mistake.”
The four-month sentence is lower than the three years prosecutors sought.
Prosecutors told the judge a tough sentence would send a clear signal to other would-be criminals.
“We are not suggesting that Mr. Zhao is Sam Bankman-Fried or that he is a monster,” Kevin Mosley, one of the prosecutors, said.
“But Zhao’s conduct wasn’t a mistake. This wasn’t a regulatory ‘oops.”
On November 21, 2023, Zhao pleaded guilty to money laundering.
Binance also agreed to pay more than $4 billion in fines and other penalties
