Court sentences Binance co-founder Changpeng Zhao

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Changpeng Zhao

A federal court in Seattle sentenced the co-founder and former CEO of Binance, the world's largest cryptocurrency exchange. One of the richest people in the cryptoindustry got off with four months in prison.

During the hearing, U.S. District Judge Richard A. Jones denied the U.S. Department of Justice's request to imprison Changpeng Zhao for three years. The reason: there was no evidence that the defendant had been informed of illegal activities on the stock exchange.

Justice Department officials insisted that a suspended sentence for Changpeng Zhao would also be a wrong decision, as such a thing could encourage others to break the law and do so on the largest scale possible. The court agreed with the argument.

In his last statement, Changpeng Zhao admitted that he failed to properly build a decent customer verification and anti-money laundering (KYC/AML) system at Binance during his leadership.

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