Zhao Changpeng, Binance founder, jailed for money laundering

The founder of Binance, the world’s largest cryptocurrency exchange, Mr. Changpeng Zhao, has been jailed for four months.

Mr. Zhao was jailed for allowing money laundering on Binance platform.

Zhao had pleaded guilty to breaching the anti-money laundering laws in the United States.

The laws were designed to prevent financing of terrorism and funds from going to sanctioned countries.

The sentence, considered a slap on the wrist, however, was by far less than expected.

Prosecutors had sought a three-year term but the judge would not hear any of that.

What is Binance?

Binance is the largest cryptocurrency exchange by trading volume as of November 2023 in the world, with over 350 listed tokens, low trading fees, and advanced trading tools.

According to Zhao, One can securely buy, sell, and hold crypto using the Binance app.

The platform allows one to trade over 350 listed cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Worldcoin (WLD).

Traders can track the market using price alerts and utilize advanced trading tools.

Traders can also set up recurring orders in minutes to buy crypto every hour, day, week, or month.

They are promised best-in-class liquidity on each crypto trade.

One can buy cryptocurrency and fund wallet using credit/debit cards, bank transfers or peer-to-peer (P2P) trading.

Binance customers can stake popular assets like Bitcoin (BTC) and earn rewards.

They can also use auto-invest to buy crypto and earn passive income simultaneously.

What are the advantages of Binance?

Binance prides itself as the most regulated crypto exchange globally, with licenses and approvals across multiple jurisdictions.

User funds are held securely in a Secure Asset Fund for Users (SAFU) worth $1 billion.

Customers, meanwhile, can get help from 24/7 live chat customer support available in 18 languages.

Zhao, it could be noted, had already paid $50m fine and pleaded guilty to the charges proffered against him.

Despite the massive fine, he remains a billionaire and the wealthiest crypto executive, according to Forbes.

Forbes magazine, in the meantime, placed his wealth at $33 billion, making him one of the richest men on earth.

About Changpeng Zhao

Changpeng Zhao, commonly known as CZ, is a Chinese-born Canadian businessman.

He is the co-founder and former CEO of Binance.

However, his recent legal troubles garnered significant attention and his journey marked by both success and controversy.

Zhao played a pivotal role in establishing Binance, which quickly rose to prominence in the cryptocurrency world.

Binance’s trading volume and user base grew exponentially during his tenure.

Zhao in court

In November, Zhao pleaded guilty to charges of violating US money laundering laws.

The charges stemmed from Binance’s alleged role in allowing criminals to launder money on its platform.

As a result, he resigned from his position at Binance.

On April 30, 2024, Zhao was sentenced to four months in prison for his actions.

The judge criticized his prioritization of Binance’s growth and profits over compliance with US laws and regulations.

The US Treasury Secretary, Janet Yellen, accused Binance of turning a blind eye to its legal obligations.

Yellen asserted that Zhao allowed money to flow to terrorists, cybercriminals, and child abusers.

Despite his legal troubles, Zhao remains a wealthy individual with his fortunes estimated at $33 billion.

The Nigerian saga

Nigerian authorities are also investigating Binance, which is registered in the Cayman Islands.

Tigran Gambarayan, responsible for financial crime compliance at Binance, was docked in a Nigerian court.

He has, however, pleaded not guilty and denied the money laundering charges.

Interestingly, the sentencing of Zhao occurred shortly after Sam Bankman-Fried was fried by a United States court.

The founder of rival crypto platform, FTX, was sentenced to 25 years in prison for fraud.

The Justice Department’s investigation into Binance revealed that the exchange made it easy for criminals to move money.

Changpeng Zhao’s journey from co-founding Binance to facing legal consequences highlights the complexities and challenges of the cryptocurrency industry.

His case serves as a cautionary tale for those operating in this rapidly evolving space.

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