The creator of the world’s biggest crypto exchange faces a four-month prison term in the US for enabling money laundering on his platform.
Changpeng Zhao stepped down from Binance in November and admitted guilt for breaching US money laundering regulations.
Following a US investigation revealing its aid in sanctions evasion, Binance was fined $4.3bn (£3.4bn).
Prosecutors aimed for a three-year prison term for the ex-Binance chief.
During a sentencing session in Seattle on Tuesday, Judge Richard Jones remarked that Zhao prioritized “Binance’s expansion and earnings over adherence to US laws and regulations,” as reported by the Verge.
In November, US authorities stated that Binance and Zhao’s deliberate breaches of its regulations jeopardized the US financial system and national security.
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Treasury Secretary Janet Yellen criticized Binance for neglecting its legal duties in the quest for profit, alleging that its deliberate shortcomings facilitated funds to reach terrorists, cybercriminals, and child abusers via its platform.
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Commonly known as “CZ,” Zhao possesses a $33 billion wealth, as per Forbes magazine.
The Nigerian government is presently probing the Cayman Islands-registered company.
Tigran Gambarayan, overseeing financial crime compliance at Binance, refuted money laundering allegations in a Nigerian court in April.
Nadeem Anjarwalla, another executive held in Nigeria with Mr. Gambarayan in February, fled custody in March.
Zhao’s sentencing follows closely after Sam Bankman-Fried received a 25-year prison term for fraud at his rival crypto platform, FTX.
Dubbed the “crypto king,” Bankman-Fried was discovered to have embezzled billions prior to the company’s collapse.
The Justice Department’s inquiry into Binance also revealed the exchange’s facilitation of money movement for criminals.
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