(qlmbusinessnews.com Wed. 1st May, 2024) London, UK —
“Cryptocurrency Tycoon Changpeng Zhao Lands in Prison: Binance Scandal Unfolds”
Changpeng Zhao, the renowned figure behind the world's leading cryptocurrency exchange, Binance, has been sentenced to four months behind bars for his involvement in facilitating money laundering activities on his platform.
Zhao, commonly referred to as “CZ,” stepped down from his position at Binance in November and admitted guilt to breaching US money laundering regulations.
The verdict comes following a hefty fine of $4.3 billion imposed on Binance after a thorough US investigation unearthed instances where the exchange aided users in circumventing sanctions.
During the sentencing session held in Seattle on Tuesday, Judge Richard Jones rebuked Zhao for prioritizing Binance's financial gains over adhering to US laws and regulations, as reported by the Verge.
In November, US authorities had denounced Binance and Zhao's deliberate violations, asserting that they posed significant threats to the integrity of the US financial system and national security.
US Treasury Secretary, Janet Yellen, remarked, “Binance chose to neglect its legal responsibilities in pursuit of profit,” highlighting how their negligence facilitated the flow of funds to terrorist organizations, cybercriminals, and individuals engaged in child abuse activities.
With a fortune estimated at $33 billion by Forbes magazine, Zhao faces ongoing scrutiny from Nigerian authorities, who are investigating Binance's operations, registered in the Cayman Islands.
Tigran Gambarayan, responsible for overseeing financial crime compliance at Binance, recently refuted allegations of money laundering during a court appearance in Nigeria earlier this April.
Meanwhile, Zhao's colleague, Nadeem Anjarwalla, who was apprehended alongside Gambarayan in Nigeria in February, managed to evade custody in March.
This development emerges shortly after Sam Bankman-Fried, the founder of rival cryptocurrency platform FTX, was sentenced to a 25-year prison term for orchestrating fraudulent activities that led to significant losses for customers.
Often hailed as the “crypto king,” Bankman-Fried was found guilty of siphoning billions from clients prior to the collapse of his firm.
In its investigation into Binance, the US Justice Department concluded that the exchange's lax protocols facilitated illicit money transfers, contributing to the global prevalence of financial crimes.
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