Binance founder jailed for allowing illicit transactions via platform 

 

Binance founder, Changpeng Zhao, has been jailed for four months over illicit transactions permitted by the platform in contravention of U.S. laws. 

The sentence was imposed by United States District Judge Richard Jones in Seattle on Tuesday after Zhao pleaded guilty to violating US money-laundering laws at the world’s largest cryptocurrency exchange.

The presiding judge, said Zhao put “Binance’s growth and profits over compliance with US laws and regulations”. 

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.

Officials said Zhao looked the other way as people conducted transactions that supported terrorism, child sex abuse, and the illegal drug trade. 

”I failed here. I deeply regret my failure, and I am sorry,” Zhao said before US District Judge Richard A Jones issued the sentence. 

“I believe the first step of taking responsibility is to fully recognise the mistakes. Here I failed to implement an adequate anti-money-laundering program. I realise now the seriousness of that mistake”, he said.

Prosecutors told the judge a tough sentence would send a clear signal to other would-be criminals.

“We are not suggesting that Mr. Zhao is Sam Bankman-Fried or that he is a monster,” prosecutor Kevin Mosley said. But Zhao’s conduct, he said, “wasn’t a mistake. This wasn’t a regulatory ‘oops.”

According to ALJAZEEZA, the three-year prison term prosecutors sought was more than twice the guideline range for the crime. If he did not receive time in custody for the offence, no one would, rendering the law toothless, they argued.

Zhao had been free on a $175m bond, and agreed not to appeal any sentence within federal guidelines. Zhao also paid $50m to the Commodity Futures Trading Commission.