Close this search box.
Blog » News » Binance founder jailed for four months

Binance founder jailed for four months

Binance founder jailed

A Seattle federal judge has held the founder of Binance accountable for his part in an elaborate money laundering scheme.

Changpeng Zhao pleaded guilty to the charges held against him last year by the Justice Department, the Commodity Futures Trading Commission (CFTC), and the Treasury Department.

Zhao, in a move to settle his tab with government lawmakers, agreed to pay a staggering $ 50 m from his funds. Binance, on the other hand, would be hit with a massive settlement charge of nearly $5 billion. This was before Judge Richard Jones laid down a custodian sentence of four months in prison for the Canadian-Chinese.

Binance founder jailed

Many spectators thought that the custodial term would be lengthy given the accusations of the company Zho was keeping. His platform aided the illicit transactions of terrorist cells, such as Hamas, al Qaeda, and ISIS.

His defense team pleaded for Zhao’s cooperation and stated that he should not be given a landmark term behind bars. They wrote, “No defendant in a remotely similar BSA case has ever been sentenced to incarceration. Mr. Zhao should not be the first.”

Many had likened Zhao’s case to that of Sam Bankman-Fried, who we reported on being sentenced to 25 years inside prison for his corrupt crypto trading. Despite the ruling by Judge Jones, albeit shorter than popularly anticipated, Zhao is an incredibly rich individual and the deciding shareholder in Binance.

Government watchdogs were hoping Zhao would be hit with an 18-month custodial sentence at the least and had upped their expectations in documentation, pushing for 36 months behind bars. So this will no doubt be seen as a bloody nose for those in the Justice Department hoping to set an example, alongside a precedent for the crypto trading platform founder’s crimes.

As a result of the court proceedings, Zhao has agreed not to appeal any of his charges for 18 months.

Image: Ideogram.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Financial News Writer and Editor
Brian-Damien Morgan, an accomplished journalist and features writer, boasts a rich career that has evolved across various media platforms. With extensive experience in the print sector of several UK newspapers, Brian transitioned seamlessly into the realm of digital broadcasting and specialized financial content creation. Brian now focuses on finance, technology, legal matters, and the wide spectrum of money-related topics.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.


Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More