Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, has been sentenced to four months in prison for failing to prevent cybercriminals and terrorist groups from trading on the platform. Despite his sentence, Zhao’s assets worth $43 billion remain untouched, and his net worth is expected to increase during his time in jail.
In 2023, Zhao stepped down as CEO of Binance but retains a 90% stake in the company. With the board of directors largely comprised of his close friends, Zhao’s influence on the exchange remains strong. The sentence imposed on Zhao by US District Judge Richard Jones in Seattle was shorter than the prosecutors had requested and below the maximum recommended under federal guidelines. It is also less severe than the 25-year sentence handed to FTX’s Sam Bankman-Fried, who was charged with stealing $8 billion from customers.
Bankman-Fried has appealed his conviction and sentence while prosecutors were satisfied with the outcome of their investigation into Binance and Zhao. Living in the United Arab Emirates, Zhao is beyond the reach of US authorities. US Attorney Tessa Gorman stated that incarceration was crucial in this case and that they were pleased with the result.
