Reports claim that Changpeng Zhao, the founder of Binance, has been sentenced to four months in prison, making him the world’s wealthiest inmate with an estimated personal fortune of $43 billion.
Changpeng Zhao, also known as CZ, received the sentence from a Seattle court after pleading guilty to violations of US anti-money laundering and sanctions laws last year.
Despite prosecutors pushing for a three-year term, the court considered the positive nature of Zhao’s past behavior and handed down the four-month sentence.
This marks a significant downfall for the former head of the world’s largest cryptocurrency exchange.
During the trial, prosecutors alleged that Zhao allowed fraudulent activities to occur to attract users, build his company, and enrich himself.
The US Government argued that Zhao believed he wouldn’t get caught and assumed the consequences wouldn’t be severe if he did.
In response, Zhao’s lawyers argued against a prison sentence, emphasizing his remorse for Binance’s actions.
Earlier this year, Binance was ordered to pay $4.3 billion after an investigation revealed its role in helping users evade sanctions.
In his defense, Zhao apologized for his mistakes and stated that Binance had been cooperating with government investigations. He expressed plans to develop educational technology for underprivileged children once released.
This verdict comes shortly after Zhao’s rival, Sam Bankman-Fried, former CEO of the collapsed cryptocurrency exchange FTX, was sentenced to 25 years for involvement in a multibillion-dollar fraud.
