On April 30, local time, Changpeng Zhao, the king of cryptocurrency, the richest man in China, a cryptocurrency billionaire, and the founder and CEO of Binance, the world’s largest cryptocurrency exchange, was sentenced for failing to prevent money laundering on the exchange. 4 months in prison, becoming the second boss in the cryptocurrency field to be sentenced to prison.
U.S. District Judge Richard Jones in Seattle handed down the sentence in a packed courtroom. The sentence imposed by the judge was shorter than the three-year sentence proposed by the U.S. Department of Justice on April 23 and lower than the maximum 18-month sentence recommended by federal sentencing guidelines.
In this regard, an unnamed law firm partner told a reporter from the Daily Economic News, “The sentencing guideline is similar to the sentencing recommendations of the Chinese Procuratorate and has the right to change. When the sentencing recommendations can be raised or lowered, it is discretionary. The power lies with the individual prosecutor.”
Regarding the impact this incident may have on the entire cryptocurrency industry, Ma Tianping, an adjunct researcher at Tsinghua University PBC School of Finance, told reporters that trading platforms may face more stringent regulatory review and compliance requirements and need to increase investment to ensure Comply with relevant laws and regulations.
Has Binance’s crisis been resolved? Judging from the current situation, the charges filed against it by the U.S. Securities and Exchange Commission (SEC) have not yet been concluded.
After admitting his mistake sincerely, Zhao Changpeng was finally sentenced to 4 months in prison
In a federal courtroom in Seattle, Changpeng Zhao stood in the dock with his hands folded on the table as a federal prosecutor asked for a sentence of three years in prison, twice the maximum sentence for the crimes he pleaded guilty to under federal sentencing guidelines. “The sentence needs to reflect the seriousness of Zhao Changpeng’s crimes.”
Prosecutors said that due to a lack of supervision, Binance, the world’s largest cryptocurrency exchange, could be abused to fund terrorists and cybercriminals.
“I fully realize the seriousness of the mistakes I made.” Zhao, 47, said in court. “I learned valuable lessons from it.” Last year, Binance admitted to participating in suspected money laundering, unlicensed remittances and sanctions violations, and agreed to pay a fine of approximately $4.3 billion. At the same time, Changpeng Zhao admitted that he failed to maintain an effective anti-money laundering program and resigned as CEO of Binance.
This attitude of admitting his mistake was recognized by the judge, and he was eventually sentenced to 4 months in prison.
According to the technology website GeekWire, Judge Jones stated in court that Binance’s specific violations of the federal Bank Secrecy Act were “unprecedented in terms of number, scale, and scale” and that it “essentially turned a blind eye” to potential terrorist financing and drug trafficking. . But he said that Zhao Changpeng showed an extraordinary sense of responsibility and recognized his dedication to participating in charity and helping others. Judge Jones said he carefully read the 160 petition letters submitted to the court before passing sentence.
On April 24, the day after the U.S. Department of Justice’s sentencing recommendation was released, Changpeng Zhao issued a signed letter of apology, not only apologizing for past poor decisions but also saying that he would take all responsibilities. Regarding the failure to establish necessary compliance measures to supervise Binance in the past, he claimed to be willing to admit all mistakes, but at the same time said, “Binance has implemented the most stringent anti-money laundering controls among all non-U.S. exchanges since 2022.”
