Bank

Richard

Million

Fine

<a href="https://bitcoinworld.co.in/binances-founder-changpeng-zhao-sentence-now-executed-starting-4-months-in-prison/" title="Binance’s Founder Changpeng Zhao Sentence Now Executed, Starting 4 Months In Prison" rel="nofollow"></a>
<ul> 
 <li style="font-weight: 400">Changpeng Zhao (CZ) started a four-month prison sentence for inadequate anti-money laundering measures and agreed to a $50 million fine.</li> 
 <li style="font-weight: 400">Binance’s founder sentence was lighter than expected as part of a settlement, while he expressed regret in court.</li> 
</ul> 
According to <a href="https://www.cnbc.com/2024/05/31/binances-ex-ceo-changpeng-zhao-begins-prison-sentence-in-southern-california.html">CNBC</a>, Changpeng Zhao, the former CEO of Binance, has begun his four-month sentence in a low-security federal prison in Lompoc, California. 
<h3 id="span-style-font-weight-400-binance-s-founder-sentence-follows-guilty-plea-and-50-million-fine-span">Binance’s Founder Sentence Follows Guilty Plea and $50 Million Fine</h3> 
Zhao, also known as CZ, pleaded guilty in November 2023 to violating the Bank Secrecy Act by failing to implement effective anti-money laundering procedures at Binance, the world’s largest cryptocurrency exchange. 
In April, Zhao was sentenced to four months in prison, a significantly lighter sentence than the three years federal investigators sought.&nbsp; 
Binance’s founder sentence was suggested a prison term of 12 to 18 months by statements’ guidelines, but Zhao’s defense team, Latham &amp; Watkins, had requested five months of probation.&nbsp; 
Zhao also agreed to pay a $50 million fine, while <a href="https://bitcoinworld.co.in/binance-accused-of-illegally-selling-genesis-claims-implicating-70-million/">Binance</a> was ordered to pay $4.3 billion. 
Before his judgment, Zhao expressed remorse to the US District Judge Richard Jones, saying, “I believe the first step of 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.” 
<h3 id="span-style-font-weight-400-the-opposing-positions-of-the-two-founders-span">The Opposing Positions of the Two Founders</h3> 
Binance’s founder sentence is part of a settlement to resolve a lengthy US government investigation into Binance.&nbsp; 
As part of this agreement, Zhao stepped down as CEO but remains a significant shareholder with an estimated 90% stake in the company. 
In contrast, FTX’s founder Sam Bankman-Fried, who did not strike a deal with the government, is serving a 25-year sentence after being convicted on all seven criminal counts related to securities fraud that led to the collapse of his cryptocurrency exchange and hedge fund, Alameda Research.&nbsp; 
Unlike Zhao, several of Bankman-Fried’s former associates, including Caroline Ellison, cooperated with journalists and raised concerns against him. 
<blockquote>
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Binance’s Founder Changpeng Zhao Sentence Now Executed, Starting 4 Months In Prison

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