Former Binance CEO Changpeng Zhao has been sentenced to four months in prison after admitting to violations of U.S. anti-money laundering and sanctions laws last year. Once the most influential figure in the cryptocurrency industry, Zhao, the founder of the world’s largest crypto exchange, is now the second major crypto leader to receive a prison sentence, following Sam Bankman-Fried of FTX.
Zhao is also the wealthiest individual to be imprisoned in the U.S., and possibly globally, with a fortune estimated at $43 billion (Rs 360969 crore), according to Bloomberg. His net worth is expected to rise even while he is incarcerated, thanks to the ongoing cryptocurrency bull market.
Although Zhao stepped down as Binance's CEO last year, reports indicate that many of his close associates still serve on the company's board. He continues to hold around a 90% stake in the company.
U.S. District Judge Richard Jones, based in Seattle, handed Zhao a significantly reduced sentence, despite prosecutors initially seeking over three years. The sentence is also below the maximum 18 months outlined by federal guidelines. By comparison, Sam Bankman-Fried received a much harsher sentence of 25 years, though he is appealing his conviction and sentence.
