Breaking: Former Binance CEO Changpeng Zhao Handed 4 Months Prison Sentence

Embattled founder of the Binance exchange, Changpeng Zhao popularly known as CZ has been sentenced to 4 months in prison by Seattle-based U.S. District Judge Richard Jones. This comes following his guilty plea to money laundering last year alongside his company pleading guilty to sanctions violations.

Changpeng ‘CZ’ Zhao to Spend the Next 4 Months Behind Bars

Changpeng Zhao, one of the most prominent figures in the crypto space and the founder of the largest cryptocurrency exchange by market cap Binance, has finally been sentenced today to four months imprisonment. CZ was handed a lenient sentence which is far below the three-year sentence sought by the prosecutors according to a Bloomberg report.

Judge Jones stated before that he disagrees with the US DOJ’s proposed three-year jail term, according to the court’s live feed. The presiding judge stated that he generally agrees with the Probation Office’s proposed sentence range of 10 to 16 months, hence the final judgment.

Changpeng “CZ” Zhao entered a guilty plea to a one-count charge of breaking the Bank Secrecy Act (BSA). As part of his plea agreement, Zhao gave up his position as CEO of Binance and agreed to pay a $50 million fine for violating restrictions connected to users in Iran, Cuba, Syria, and Russian-occupied parts of Ukraine, as well as for failing to maintain an effective anti-money laundering program.

Earlier this month, lawyers from the Justice Department recommended a 3-year term suggesting that a sentence of that magnitude would not only send a message to worldwide crypto players but would hold him accountable for his global criminal conduct. However, Zhao’s attorneys argued that the founder has accepted responsibility for the money laundering crimes and that it would be fair if he was given a five-month probationary period instead. It is important to note that Zhao has already been away from his family for more than five months after being told to stay in the United States.

As the news continues to unfold, market participants watch for a potential effect on the price movement in the market. Following the sentencing, the global crypto market cap has plummeted by 5.12% to $2.21 trillion. As the dust settles, the long-term effect of the situation on the crypto market will be seen in the coming weeks.

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