The CEO of the largest cryptocurrency exchange globally has received a four-month prison sentence in the United States for enabling money laundering activities by criminals on his platform.
Changpeng Zhao stepped down from his position at Binance in November and admitted to breaching US money laundering regulations. Following a US investigation uncovering Binance’s involvement in assisting users to evade sanctions, the company was ordered to pay $4.3 billion (£3.4 billion) in penalties. Prosecutors had initially sought a three-year prison term for Zhao.
During a sentencing hearing in Seattle, Judge Richard Jones remarked that Zhao prioritized Binance’s expansion and financial gains over adhering to US laws and regulations. US authorities asserted that Binance and Zhao’s deliberate infractions posed threats to the country’s financial system and national security.
Treasury Secretary Janet Yellen criticized Binance for disregarding its legal obligations in pursuit of profits.
Its deliberate shortcomings facilitated the transfer of funds to terrorists, cybercriminals, and individuals involved in child exploitation via its platform.
Zhao, often referred to as “CZ,” boasts a fortune estimated at $33 billion by Forbes magazine. Nigerian authorities are currently probing a company registered in the Cayman Islands, linked to Zhao’s ventures. Tigran Gambarayan, responsible for financial crime compliance at Binance, refuted allegations of money laundering in a Nigerian court in early April.
Nadeem Anjarwalla, another high-ranking executive, who was detained in Nigeria with Gambarayan in February, managed to escape custody in March. Zhao’s sentencing follows shortly after Sam Bankman-Fried received a 25-year prison sentence for fraudulent activities at his competing cryptocurrency platform, FTX.
Bankman-Fried, often hailed as the “crypto king,” was discovered to have misappropriated billions from clients prior to the company’s collapse. The Justice Department’s probe into Binance also revealed that the exchange facilitated the movement of funds for criminals, making it straightforward for illicit activities.
Read More: Asia sees gains as Hong Kong debuts its first spot bitcoin and ether ETFs
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Jomotoday for more information visit privacy policy
Leave a Comment