The court has rendered its verdict against Changpeng Zhao. The former boss of the Binance cryptocurrency platform was sentenced to four months in prison on Tuesday for money laundering by a San Francisco court.
The founder of the company pleaded guilty last year in American justice and received a much lesser sentence than the three years of imprisonment requested by the prosecution.
An industry lacking regulation
According to the investigation by American authorities, Binance had not put in place the necessary measures to prevent transactions carried out for the benefit of groups such as the Islamic State, Al-Qaeda or the armed wing of Hamas.
After pleading guilty, Changpeng Zhao left his post as head of Binance late last year. For its part, Binance had agreed to pay $4.3 billion in order to end the lawsuits against the company.
The Department of Justice wanted to make the 47-year-old leader an example, within a cryptocurrency industry often singled out for its lack of regulation. Changpeng Zhao “believed that violating US law was the best way to attract users, build his business and fill his pockets, it is a business decision”, considered the ministry in court documents relating to the case .
A fallen king of cryptocurrencies
The lawyers of the former king of cryptocurrencies called for a suspended prison sentence, pointing in particular to his repentance. “I made mistakes, I accept the consequences,” Changpeng Zhao, a Canadian citizen who now lives in the United Arab Emirates, assured via tweet in November.
Binance was established in 2017 and quickly became the number one cryptocurrency exchange, making its founder and CEO Changpeng Zhao a billionaire. Although the company was created in China, Changpeng Zhao moved the headquarters to different countries after Beijing wanted to reduce the share of the cryptocurrency sector in its economy.