Changpeng ‘CZ’ Zhao, founder and former boss of the world’s largest cryptocurrency exchange Binance, has copped a four-month prison sentence for allowing money laundering on the exchange.
It is a significantly lighter sentence than the three years prosecutors had hoped for after he pleaded guilty to charges brought against him in November 2023.
US District Judge Richard A. Jones applauded CZ for cooperating with the courts and taking responsibility for his actions, but added that “no person, regardless of wealth, is immune from prosecution or above the laws of the United States”.
CZ’s official charge was violating the Bank Secrecy Act, which outlines know-your-customer and anti-money laundering obligations.
Terrorist organisations including Al Qaeda and Islamic State allegedly used Binance to transfer funds
“I failed here,” CZ admitted to the court. “I deeply regret my failure, and I am sorry.”
CZ appeared to take the sentencing in his stride, taking to X to “thank everyone for your care and support, be it writing letters, showing support on X, or in any other form”.
“I wish I could change that part of Binance’s story,” said CZ. “But under my direction, Binance has now implemented the most stringent anti-money laundering controls of any non-US exchange, and those controls have been in place since 2022.”
He said he would remain a “passive” investor in crypto and heralded a “new phase” for the industry where “compliance is super important".
Perhaps a sign of his clairvoyant abilities, an X post from CZ almost precisely one year ago containing just one character, 4, plus a photograph of him smiling and holding up four fingers, began to go viral.
— CZ ???? BNB (@cz_binance) March 3, 2023