Changpeng Zhao, the former CEO of Binance, will spend four months in prison for not putting in place sufficient anti-money laundering measures at the cryptocurrency exchange.
The three-year sentence that the prosecutors had sought for what they believed to be a serious breach of the Bank Secrecy Act (BSA) is significantly shorter than the one that was handed down in Seattle.
Judge Richard Jones gave careful consideration to CZ's history as a philanthropist and first-time offender throughout the sentence hearing, which had a big impact on his choice.
Judge Jones went over a number of letters before to the hearing that were positive in nature and highlighted CZ's charity endeavors and moral character.
As a result of Binance's severe negligence in its anti-money laundering procedures, CZ becomes the first CEO to be imprisoned under the BSA. Prosecutors claimed that his charitable contributions to international organizations absolved him of any legal crimes; the defense refuted this claim by emphasizing his cooperation and voluntary surrender.
From the numerous letters that Judge Jones received, describing CZ as a kind but imperfect person, it was clear that CZ had a great deal of support. The focus of CZ's defense was his spotless record and proactive involvement in the judicial system, which included his choice to face charges even though he didn't live in a nation that allows extradition.
Noting that CZ's riches and rank do not place him above the law, the judge made it clear that his position at Binance did not free him from obeying it.
CZ intends to carry with his charitable endeavors despite serving his sentence, especially his global education program for kids. This suggests that his career setback is probably just a temporary setback.
May 2024, Cryptoniteuae