The most powerful person in the crypto industry, Changpeng Zhao is the second major crypto boss to be sentenced to prison.
The founder of the world’s largest cryptocurrency exchange- Changpeng Zhao has been sentenced to four months in prison after he pleaded guilty to violations of US anti-money laundering and sanctions laws last year. Former CEO of Binance & founder of the world’s largest cryptocurrency exchange was once the most powerful crypto industry figure in the world. He has become the second major crypto boss who’s in jail after Sam Bankman-Fried of FTX.
Richest Prisoner Changpeng Zhao’s Net Worth
Changpeng Zhao has become the richest person to be imprisoned in the US and likely in the world as well. His net worth is $43 billion, as per Bloomberg and it is estimated to grow more, even though he is in jail, due to the boom in crypto currency market.
Changpeng Zhao Guilty Over Money Laundering Violations
Changpeng Zhao resigned as CEO of Binance last year but retains an approximate 90% stake in Binance.
The sentence was imposed by U.S. District Judge Richard Jones in Seattle, who rejected prosecutors’ request that the 47-year-old Zhao serve a three-year term, twice the maximum recommended under federal guidelines.
The sentence imposed by U.S. District Judge Richard Jones in Seattle was significantly shorter than the three years sought by prosecutors, and below the maximum 1-1/2 years recommended under federal guidelines.
Once considered the most powerful person in the crypto industry, Zhao, known as “CZ,” is the second major crypto boss to be sentenced to prison. In March, Sam Bankman-Fried received 25 years behind bars for stealing $8 billion from customers of his now-bankrupt FTX exchange.
Bankman-Fried is appealing his conviction and sentence.
Before handing down the sentence, Jones faulted Zhao for putting growth and profits before complying with U.S. laws. Zhao had been free on a $175 million bond, and agreed not to appeal any sentence within federal guidelines. Zhao also paid $50 million to the Commodity Futures Trading Commission.
(With Inputs From Reuters)