Changpeng “CZ” Zhao, the founder of Binance, has been sentenced to four months in prison by a Seattle court. The conviction, stemming from guilty pleas to money laundering and sanctions violations, has made Zhao the world’s wealthiest incarcerated individual.

Despite prosecutors’ request for a three-year term, the court considered Zhao’s previous good conduct, resulting in the reduced sentence. Zhao’s net worth, derived from his stake in Binance, stands at an estimated $33 billion.

Prosecutors alleged that Zhao had knowingly permitted criminals to launder money through Binance, boasting about breaking the law. The Treasury Department accused Binance of ignoring its legal obligations by allowing transactions involving terror groups like Hamas and ISIS.

Zhao’s defense team maintained his innocence and expressed remorse for Binance’s actions. They emphasized his cooperation with government investigations.

The sentence follows the recent 25-year prison term imposed on Sam Bankman-Fried, the former CEO of rival cryptocurrency exchange FTX. Both individuals were once prominent figures in the trillion-dollar cryptocurrency industry.

Binance, headquartered offshore, remains the world’s leading cryptocurrency exchange despite the legal challenges faced by its founder. CONTINUE READING