The former CEO of Binance, Changpeng Zhao, was sentenced to four months in prison after he acknowledged breaking US sanctions and anti-money laundering rules the previous year. Zhao, who was formerly among the most powerful people in the cryptocurrency space, is now the second significant figure in the space to be imprisoned, after Sam Bankman-Fried of FTX.
Zhao was a very wealthy man, therefore his imprisonment is noteworthy in addition to his previous prominence. Having amassed a personal wealth of $43 billion, he is not only the wealthiest person incarcerated in the United States but maybe the entire globe. According to Bloomberg reporting, the current cryptocurrency bull run may even allow his net worth to increase while he is incarcerated.
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Zhao’s influence at Binance is still strong even after he resigned as CEO last year since several of his close pals are still board members. In addition, he still owns over 90% of Binance.
US District Judge Richard Jones gave Zhao a less severe jail sentence than the prosecution had requested, which was a relatively lenient decision. Zhao received a sentence of just four months, which is less than the maximum recommended by federal standards, despite the prosecution’ goal of more than three years. Sam Bankman-Fried, on the other hand, is facing a 25-year term; however, he is currently appealing both his conviction and sentence.
“This was an epic day,” US Attorney Tessa Gorman said, expressing delight with Zhao’s punishment. In this instance, incarceration was essential, thus we’re happy with the results.