Binance’s ex-CEO Changpeng Zhao, also known as ‘CZ,’ has been sentenced to four months in prison for violations of United States anti-money laundering laws.
Federal judge Richard Jones handed over the court’s decision during the 2 1/2 hour sentencing hearing in the US District Court for the Western District Court of Washington on April 30.
The decision is a lesser sentence from prosecutors’ requested three-year prison sentence, an enhanced sentence from the 18-month jail term recommended for the charge over claims that the scope and ramifications of the former Binance CEO’s misconduct were “massive.”
According to a report from CoinTelegraph, Judge Jones stated that there was no evidence specifically pointing that Zhao was ever informed of particular illegal activities at Binance, leading to his decision for a lesser sentence.
On the other hand, Judge Jones near the start of the sentencing commented on the 47-year-old billionaire’s character, stating "To be honest with you, sir, everything I see about your history and characteristics are of a mitigating nature.”
CZ Zhao’s defense lawyers requested he be given probation with no prison term, noting that he is not a “run of the mill criminal defendant” but a philanthropist and a first-time lawbreaker, a report from CoinDesk detailed.
Kevin Mosley, speaking for the prosecution, stated that putting the offender in jail is needed to show how serious the crime is, “Incarceration is necessary to reflect the seriousness of the offense.”
He added that giving probation instead could make people think it is okay to break the law, especially on a big scale, “A probationary sentence here will incentivize others to break the law and to do it on the largest scale possible.”
In relation to the latest developments, The Verge said that CZ Zhao pleaded guilty to breaking US anti-money laundering laws, agreeing to pay a personal fine of $50 million and step down as Binance CEO.
Binance also agreed to pay $4.3 billion in fines to settle the Department of Justice’s investigations on the crypto exchange’s alleged violations to the Bank Secrecy Act (BSA).