Changpeng Zhao, founder of the world’s largest cryptocurrency exchange Binance, was sentenced to 4 months in prison for failing to implement anti-money laundering programs. This allowed criminals to use the platform for illegal activities like drug trafficking and terrorism.
While Zhao took responsibility and Binance paid a hefty fine, the judge highlighted the company’s disregard for U.S. regulations to fuel rapid growth. This case marks the first prison sentence for such Bank Secrecy Act violations, raising questions about stricter penalties in the cryptocurrency industry.
The news comes amidst a wave of scandals for crypto, including the collapse of FTX, a major competitor, and ongoing legal troubles for prominent figures.
