Changpeng ‘CZ’ Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange, has received a four-month prison sentence for allowing money laundering activities on the platform.
This sentence is considerably less severe than the three years sought by prosecutors after his November 2023 guilty plea.
US District Judge Richard A. Jones commended CZ for his cooperation and accountability but emphasized that “no person, regardless of wealth, is above the laws of the United States.”
CZ was charged with violating the Bank Secrecy Act, which mandates strict know-your-customer and anti-money laundering measures.
It was alleged that terrorist organizations, including Al Qaeda and the Islamic State, used Binance to move funds.
“I failed here,” CZ confessed in court. “I deeply regret my failure, and I am sorry.”
CZ seemed to accept the sentence calmly, expressing gratitude on X for the support through letters and social media.
“I wish I could change that part of Binance’s story,” CZ remarked. “However, under my leadership, Binance has adopted the most rigorous anti-money laundering protocols of any non-US exchange since 2022.”
He mentioned he would continue as a “passive” investor in the cryptocurrency sector and pointed to a “new phase” for the industry where “compliance is super important.”
Interestingly, a post by CZ on X from nearly a year ago, featuring the number 4 and a photo of him smiling and holding up four fingers, gained viral attention.
