Bank

Richard

2024

<h4><strong>Changpeng “CZ” Zhao received a <a href="https://twitter.com/AMLane_au/status/1785525223829516640" target="_blank" rel="noopener noreferrer nofollow">four-month sentence</a> on Tuesday after submitting a guilty plea. The Binance co-founder was charged with aiding money laundering at the crypto exchange.&nbsp;</strong></h4>
<p>He appeared to have received a lighter sentence than the three years prosecutors sought to enforce. Tuesday’s ruling makes CZ the second crypto executive to be sentenced in recent months.</p>
<h5><strong>What was CZ’s Crime?</strong></h5>
<p>Zhao was once considered one of the most prominent figures in the crypto industry. However, the Asian businessman was forced to <a href="https://www.altcoinbuzz.io/regulations/binance-ceo-cz-resigns-pleads-guilty-in-us/" target="_blank" rel="noopener noreferrer nofollow">resign</a> from his role at Binance following pressure from US prosecutors.</p>
<p>US authorities claimed Zhao failed to implement anti-money laundering measures as required by the Bank Secrecy Act. In addition, prosecutors claimed the former CEO enabled illegal transactions between US citizens and people in sanctioned regions.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).</p>
 <p>I will remain a…</p>
 <p>— CZ <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f536.png" alt="🔶" class="wp-smiley" style="height: 1em; max-height: 1em;"> BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1785465555899822488?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 1, 2024</a></p>
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<p>U.S. District Judge Richard Jones faulted Zhao for prioritizing profits over compliance. He said, “You had the wherewithal, the financial capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity.</p>
<p>In a recent memorandum, US prosecutors claimed Binance, under CZ, sought to bypass the law. The memorandum stated that “Zhao bet that he would not get caught and that if he did, the consequences would not be as serious as the crime. But Zhao was caught, and now the Court will decide what price Zhao should pay for his crimes.”</p>
<p>Prosecutors added that Binance, under Zhao, supported the sale of child abuse materials. And they also profited from fees from ransomware attacks. Binance paid around $4 billion in fines to US authorities as part of a settlement deal last year.</p>
<p>A repentant CZ told the court after his sentencing, I’m sorry. I believe the first step in taking responsibility is to fully recognize the mistakes. Here, I failed to implement an adequate anti-money laundering program… I realize now the seriousness of that mistake.”</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">.<a href="https://twitter.com/cz_binance?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@cz_binance</a> may be off to federal prison for financial crimes that led <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@binance</a>, the exchange he founded, to agree to pay a $4.3 billion fine. But his reputation, at least in a Seattle courtroom on Tuesday, was never better.<a href="https://twitter.com/realDannyNelson?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@realDannyNelson</a> reports<a href="https://t.co/geK9XRzMmE" rel="noopener noreferrer nofollow">https://t.co/geK9XRzMmE</a></p>
 <p>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1785435854753734723?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 30, 2024</a></p>
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<p>US prosecutors hailed the outcome of Zhao’s case as a step forward in ensuring the crypto space complies with US laws. US Attorney Tessa Gormand remarked that “incarceration was critical in this case, and we’re pleased with the result.”</p>
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<h6><strong>Disclaimer</strong></h6>
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p>
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/cz-receives-4-month-sentence-for-money-laundering/" rel="noopener noreferrer nofollow">CZ Receives 4-Month Sentence for Money Laundering</a> appeared first on <a href="https://www.altcoinbuzz.io" rel="noopener noreferrer nofollow">Altcoin Buzz</a>.</p>

CZ Receives 4-Month Sentence for Money Laundering

Altcoin Buzz

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