Better

Bitcoin

Read

Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, was recently sentenced, which led to a variety of reactions. Zhao, charged with noncompliance in the implementation of an adequate anti-money laundering program in Binance, was given four months in prison. 
This is in spite of the fact that the <a href="https://coingape.com/breaking-changpeng-cz-zhao-might-get-10-16-months-jail-time/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Department of Justice (DOJ)</a> did not charge him directly with money laundering but rather chose to focus on procedural lapses with the company he had founded.
The light sentence handed to one of the wealthiest people in the cryptocurrency sector has sparked public anger and conversations regarding the adequacy and equity of the DOJ’s technology industry white-collar crime approach. Having a net worth speculated to be more than $40 billion, the punishment of <a href="https://coingape.com/trending/3-reasons-why-changpeng-zhao-prison-can-be-3-years-long/" rel="noopener noreferrer nofollow">Zhao </a>has led to an inquiry regarding whether financial penalties and short imprisonment sentences are enough deterrents for high-net-worth individuals.
<h2 id="public-and-expert-reactions">Public and Expert Reactions</h2>
Zhao’s sentencing has received responses from the public as well as from various experts, but the response to the sentencing was mixed. While some consider the sentence justified by legal precedents and Jao’s post-indictment cooperation, others, like Dennis Kelleher, CEO of <a href="https://coingape.com/better-markets-ceo-demands-former-ftx-executives-jail-time-amid-high-scrutiny/" rel="noopener noreferrer nofollow">Better Markets</a>, believe it is a serious injustice. 
Kelleher’s strong criticism arises from his opinion that the DOJ’s approach to the case implies a rather permissive attitude towards the potential corporate offenders, especially in the fast-growing crypto industry.
Some legal analysts have mentioned that federal sentencing guidelines for similar nonviolent offenses usually advise no prison term for first-time offenders, which impacts the judge’s ruling. Nevertheless, the difference in sentences between Zhao and other prior high-profile cryptocurrency industry cases has furthered the discussion on the uniformity and severity of legal consequences for corporate offenses.
<h2 id="changpeng-zhao-s-penalties-and-corporate-compliance">Changpeng Zhao’s Penalties and Corporate Compliance</h2>
Apart from the prison sentence, Zhao was also fined $50 million, which most critics say is peanuts considering his enormous wealth. This aspect of the sentencing also adds weight to the view that the monetary penalties are generally disproportionally low in respect of the personal wealth of high-net-worth individuals convicted of white-collar crimes.
In addition, under the pact, <a href="https://coingape.com/binance-founder-changpeng-zhao-to-face-probation-or-3-year-prison-sentence/" rel="noopener noreferrer nofollow">Binance </a>is to appoint an independent monitor to supervise its adherence to anti-money laundering rules and practices for a period of up to five years. 
This action is perceived as a step towards more regulatory control over cryptocurrency exchanges on the part of other countries, many of which have criticized these firms because they enable anonymous financial transactions.
<h2 id="continued-business-operations-and-oversight">Continued Business Operations and Oversight</h2>
Irrespective of the discussions that surrounded his sentencing, Zhao’s standing in the crypt world is relatively high. Binance remains operational and dominant in the <a href="https://coingape.com/binance-founder-changpeng-cz-zhao-uae-travel-request-denied/" rel="noopener noreferrer nofollow">cryptocurrency exchange</a> market. 
Zhao is also allowed to come back to a leadership position within several years, a condition which is met with the skepticism by critics who believe that it undermines the severity of accusations against him.
The independent monitor, as well as other charges that may be filed in the future against the other individuals involved with Binance’s operations, are considered vital means of determining the DOJ’s continuous commitment to holding the financial giants accountable.
Read Also: <a href="https://coingape.com/us-doj-charges-bitcoin-pioneer-roger-ver-with-tax-evasion/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">US DOJ Charges Bitcoin Pioneer Roger Ver with Tax Evasion</a>
The post <a href="https://coingape.com/doj-sweet-deal-for-binance-changpeng-zhao-faces-backlash/" rel="noopener noreferrer nofollow">DOJ “Sweet Deal” for Binance Changpeng Zhao Faces Backlash for Leniency</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

DOJ “Sweet Deal” for Binance Changpeng Zhao Faces Backlash for Leniency

Table of Contents

Coingape News Media

Other articles published on Apr 30, 2024

Indians are including cryptocurrencies in their retirement plans, survey reveals

Solana’s Market Struggles Amid Global Crypto Slowdown

Bitcoin, Ethereum, Dogecoin Closing April With Heavy Losses, Slide Below $60K Causes Over $380M I...

SSV.Network Partners with Ether.Fi for Revolutionary Staking Advancement

PLAY Wallet updated

CoinGecko: Ethereum overtakes Solana by DEX trading volume

Join our free newsletter for daily crypto updates!