Binance founder, Zhao, sentenced to 120-day prison term

The former boss of the world’s largest cryptocurrency exchange has been jailed for four months for allowing money laundering.

The sentence was handed down to billionaire Binance founder Changpeng Zhao, nicknamed CZ, after he pleaded guilty to breaching US anti-money laundering laws designed to prevent terrorist financing and funds going to sanctioned nations.

The prison term was far less than sought by U.S. prosecutors who wanted a three-year term – twice the maximum 18 months recommended under federal sentencing guidelines – to be tough on the man once thought to be the most powerful person in the crypto world.

The defence had called for probation with no prison time for their client. A $50m (£40m) fine has already been paid by Mr Zhao.

Despite the massive fine, he remains a billionaire and the wealthiest crypto executive, with Forbes magazine putting his wealth at $33bn (£26.4bn).

Zhao apologised before sentencing. “I failed here,” Mr Zhao said. “I deeply regret my failure, and I am sorry.”

But district judge Richard Jones told CZ, “You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity.”