The short trial and guilty plea of Binance founder and ex-CEO Changpeng Zhao finally saw its sentencing for the executive, and he is only getting four months of prison time to serve.
This follows the massive case that the SEC and the US DOJ filed against Binance and its founder, ranging from failing to apply for licenses and securities to his anti-money laundering case.
For years, Binance has been under the watchful eye of the law and regulators, with Zhao not giving much of a fight and admitting his crimes almost immediately.
Binance's Ex-CEO Changpeng Zhao Gets 4-Month Prison Sentence
(Photo: David Ryder/Getty Images)
This centers on his violations of the Bank Secrecy Act, one where the chief executive and his company failed to set up its anti-money laundering program.
Judge Richard A. Jones sentenced him to only four months for his crimes, but what he did for the US government, including his guilty plea deal, was also considered.
Zhao also paid a personal settlement of $50 million as part of the deal, with him only serving 1/12th of the recommended sentence by the prosecution.
Read Also: Binance to Pay $2.7B, Zhao $150M to CFTC to Settle its Issues, On Top of Other Fines
Changpeng Zhao was Recommended a 3-Year Sentence
US prosecutors who handled the case recommended three years for Zhao's crimes, claiming that this was not a mere mistake or an unprecedented act as Zhao allegedly knew he was breaking the law.
However, it was also revealed that the standard federal sentence for Zhao's crimes only constitutes 12 to 18 months (1 to 1 and 1/2 years) behind bars.
Binance and Changpeng Zhao's Fall
June 2023 marked the end of Binance and Changpeng Zhao's run, as the SEC filed a lawsuit against them for their federal violations regarding their proper licenses and securities for their operations in the country.
This case pursued Binance to its renowned settlement, with the SEC stating that the company and its founder reflected "blatant disregard" for federal law.
In November, as the issue with the SEC and US DOJ heated up, Zhao announced his resignation as the crypto exchange company's CEO. This was also the time that he pled guilty to the charges against him.
This centers on the federal money laundering charges filed against him by the US government, to which he took a plea deal and owned up to his crimes.
During this time, it was known that two crypto titans were tried, with FTX's Sam Bankman-Fried known for fighting his charges, but CZ owning up and claiming that he is guilty.
Binance and Zhao both settled, with CZ personally paying $50 million as part of the settlement. He is now set to serve his prison sentence, for which he was given four months.
Related Article: Binance to Pay $4.3B for Sanctions, As US Judge Approved Plea Deal
