Changpeng Zhao, also known as “CZ”, has been sentenced to four months in prison for violating US laws against money laundering during his time as CEO of Binance, the world’s largest cryptocurrency exchange. This is the second major crypto boss to be sentenced to prison, with the sentence being significantly shorter than what was sought by prosecutors. Despite the lighter sentence, prosecutors are pleased with the outcome as they believe incarceration was necessary in this case.
In a highly publicized legal battle, Binance founder Zhao has been sentenced to prison for failing to establish an adequate anti-money laundering system. This comes as a significant development in the US Justice Department's efforts to combat illicit activities within the cryptocurrency industry, following the 25-year sentence given to former rival Sam Bankman-Fried for fraud. Zhao's sentencing signals a shift in the once-dominant Binance's leadership and raises concerns over the company's compliance with US authorities.