Binance Founder gets 4-month sentence for Anti-money laundering violation

Former Binance CEO Changpeng Zhao Pleads Guilty

Sentenced to 4 months in prison

Seattle, April 30 (Reuters) - Changpeng Zhao, the former CEO of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. anti-money laundering laws.

Zhao, known as "CZ" in the crypto community, pleaded guilty last month to charges related to Binance's failure to register with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) and to implement adequate anti-money laundering and know-your-customer (KYC) procedures.

As part of his plea agreement, Zhao agreed to forfeit $1.2 million in cryptocurrency and to cooperate with U.S. authorities in their ongoing investigation into Binance.

Binance, the world's largest cryptocurrency exchange, has been under investigation by U.S. authorities since 2019. The company has been accused of allowing its platform to be used for money laundering and other illegal activities.

Zhao's sentencing is a significant development in the U.S. government's crackdown on cryptocurrency exchanges. It is the first time that a top executive of a major cryptocurrency exchange has been convicted of a crime in the United States.

Binance said in a statement that it is "disappointed" with Zhao's sentence but that it "respects the decision of the court." The company said that it has "taken significant steps" to improve its compliance with U.S. laws and regulations and that it is "committed to cooperating with U.S. authorities in their ongoing investigation.