Crypto giant Binance's founder, Changpeng Zhao (CZ), is now serving a 4-month prison sentence in California. This comes after he pleaded guilty to charges related to allowing money laundering on his exchange.
Prosecutors had initially sought a much harsher sentence of 3 years, but Zhao received leniency due to his admission of guilt. He expressed remorse for failing to implement proper anti-money laundering measures at Binance.
This sentencing is part of a larger settlement Zhao reached with the US government in November 2023. The deal concluded a lengthy investigation into Binance and resulted in Zhao's resignation as CEO. He was also hit with a personal fine of $50 million, on top of the $4.3 billion in fines imposed on Binance itself.
CZ's case isn't an isolated incident. The crypto industry is facing a wave of legal troubles. This is further highlighted by the recent 25-year sentence for Sam Bankman-Fried, founder of the collapsed FTX exchange, who was convicted of fraud.
