Changpeng Zhao, the founder of Binance, has been sentenced to four months in jail for violations of US anti-money laundering and sanctions laws. Despite prosecutors seeking a three-year term, Zhao will be one of the wealthiest inmates ever with a reported net worth of about $33 billion.
Zhao stepped down as CEO of Binance last year but still retains an estimated 90% stake in the company. The company agreed to pay $4.3 billion to settle charges related to violating US anti-money laundering laws. Zhao’s attorneys argued that probation was more fitting given his acceptance of responsibility and philanthropic track record.
Binance was created in 2017 and quickly rose to prominence in the cryptocurrency trading market. However, the company faced challenges when crypto markets collapsed and regulators began investigating its operations. This news comes on the heels of another high-profile case involving Sam Bankman-Fried, CEO of FTX, who was sentenced to 25 years for a multibillion-dollar fraud scheme. Bankman-Fried was found guilty of siphoning off customer funds for high-risk investments.