Changpeng Zhao will pay a $50 million fine and step down as chief executive of the company he created, the latest blow to the crypto world since the implosion of FTX last year.
Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange in the world, pleaded guilty to money laundering violations, the government said on Tuesday, a stunning blow to the most powerful and influential figure in the global crypto industry.
Binance itself also pleaded guilty and agreed to pay $4.3 billion in fines and restitution to the government, according to federal authorities. Under the agreement, Binance reached settlements with the Justice Department, the Treasury Department and the Commodity Futures Trading Commission, which have all been investigating the company for years.
As part of his guilty plea, Mr. Zhao agreed to pay a $50 million fine and step down from his role as the company’s chief executive. Mr. Zhao faces up to 18 months in prison under federal sentencing guidelines, but prosecutors are keeping open the possibility of asking for a stiffer penalty, according to senior Justice Department officials.
Binance, as part of its own plea deal with federal prosecutors, will accept the appointment of a government monitor to oversee the business. Mr. Zhao is barred from any involvement in Binance until three years after the monitor is appointed, court papers show.
Mr. Zhao and a representative for Binance entered the guilty pleas in federal court in Seattle. In a statement, Binance said the agreement acknowledged “our company’s responsibility for historical, criminal compliance violations.” The company said Richard Teng, a top executive, would take over as chief executive, but that Mr. Zhao would remain “available for consultation on historical areas of our business.”
Mr. Zhao said on X, the platform formerly known as Twitter, that he had “made mistakes” and “must take responsibility.” But he also said he was looking forward to taking a break from his exhausting schedule, and planned to do some “passive investing” in various crypto projects.
Thank you for your patience while we verify access. If you are in Reader mode please exit andlog intoyour Times account, orsubscribefor all of The Times.
Thank you for your patience while we verify access.
Changpeng Zhao (Chinese: 赵长鹏; pinyin: Zhào Chángpéng), commonly known as CZ, is a Chinese-born Canadian businessman. Zhao is the co-founder and former CEO of Binance, the world's largest cryptocurrency exchange by trading volume as of November 2023.
, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.
Changpeng Zhao, the founder of the world's leading cryptocurrency exchange, was sentenced on Tuesday to four months in prison after pleading guilty last year to charges that he failed to maintain an effective anti-money laundering program.
“Binance's and Zhao's willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”
Changpeng Zhao, the former CEO of Binance, has started a four-month prison sentence in Lompoc, California, for not preventing money laundering on the exchange. Zhao pleaded guilty and received a lighter sentence than prosecutors had sought. He also agreed to pay a $50 million fine.
Zhao pleaded guilty in November to one count of failing to take required anti-money-laundering measures and stepped down as Binance agreed to pay $4.3bn to settle related allegations.
SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.
Changpeng Zhao, the founder of cryptocurrency firm Binance, has become the world's richest prisoner after he was sentenced to four months in jail on Tuesday, the Telegraph reported. Mr Zhao was sentenced by a Seattle Court after pleading guilty to violations of US anti-money laundering and sanctions laws last year.
In November 2023, Binance. US's majority beneficial owner and control person, Changpeng Zhao, plead guilty to felony charges stemming from his willful violations of U.S. anti-money laundering and sanctions law. Due to the nature of the felonies committed by Zhao, the Division has revoked Binance.
However, on Nov.21, 2023, the U.S. Department of Justice (DOJ) officially announced criminal charges against Binance and CEO Changpeng Zhao. The main charge is vast flows of dirty money from countries including Russia, Iran and Cuba.
Changpeng Zhao, the founder of Binance, has been sentenced to four months in prison for money laundering, unlicensed money transmitting and violations in Seattle, United States (US).
The Binance Coin price is $602.62, a change of 1.10% over the past 24 hours as of 6:35 a.m. The recent price action in Binance Coin left the tokens market capitalization at $92.72B. So far this year, Binance Coin has a change of 92.69%.
Changpeng Zhao, who goes by CZ, is the founder and former CEO of Binance, the largest cryptocurrency exchange in the world. The Chinese-Canadian coder cut his teeth building high-frequency trading systems for Wall Street's flash boys. Zhao founded Binance in 2017, raising $15 million through an initial coin offering.
Zhao's departure as CEO will not be a complete separation from Binance. The company's founder will remain its majority shareholder, and a resource for “consultation on historical areas of the business,” according to a Binance press statement.
Zhao, 47, stepped down as Binance's chief in November, when he and the exchange he founded in 2017 admitted to evading money-laundering requirements under the Bank Secrecy Act. Binance agreed to a $4.32 billion criminal penalty.
Binance founder Changpeng Zhao was sentenced to four months in prison for violations of the Bank Secrecy Act during his time at the crypto exchange. The Department of Justice (DOJ) sought a three-year prison sentence, while CZ's lawyers requested probation instead.
Tigran Gambaryan, a U.S. citizen and Binance's head of financial crimes compliance, was charged with both tax evasion and money laundering along with his employer.
Introduction: My name is Dr. Pierre Goyette, I am a enchanting, powerful, jolly, rich, graceful, colorful, zany person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
