Ex-Binance CEO Changpeng Zhao Receives 4 Months Jail Time For AML Violations
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Changpeng Zhao (aka CZ) the founder and former CEO of crypto exchange giant Binance has been sentenced to 4 months in prison after a hearing in a Seattle courthouse on Tuesday.
- The sentencing follows CZs guilty plea to running afoul of know-your-customer and anti-money laundering requirements at his exchange in November.
- During the hearing, Judge Richard Jones acknowledged tht CZ had accepted responsibility for his actions, and that his actions at Binance were of a mitigating nature.
- Theres no evidence that the defendant was ever informed [of illegal activity at Binance] the judge said, as reported by journalist Nikhilesh De.
- Jones was immediately skeptical of the Department of Justice (DOJ), for arguing that CZ should be sentenced to three years twice the recommended sentencing guideline for similar crimes.
- The DOJ argued that the punishment should fit the magnitude of CZs crime, claiming the Bank Secrecy Act would for intents and purposes be a dead letter, if CZ did not receive meaningful time in prison.
- By contrast, CZs defense argued for no prison time at all, citing the United States previous case against BitMEX co-founder Arthur Hayes, who instead received two months probation.
- Binance has already agreed to pay a $4 billion fine, while CZ paid a $50 million fine as part of a plea deal last year. Some estimates suggest that the crypto mogul still has $43 billion to his name.
- I recognize the importance of having a robust KYC/[anti-money-laundering] program, said CZ in court on Tuesday. That is why I directed Binance to cooperate with the U.S.s investigation.
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Text source: CryptoPotato
