In 2017, Binance was founded by Changpeng Zhao and quickly became a major player in the cryptocurrency trading market. However, recent news has brought Zhao’s past actions into the spotlight as he was sentenced to four months in jail for violations of US anti-money laundering and sanctions laws. Despite prosecutors seeking a three-year term, the court took into account Zhao’s “positive nature” and handed down a shorter sentence. With a reported net worth of about $33 billion, Zhao will be one of the wealthiest inmates ever.
Despite stepping down as CEO of Binance last year, Zhao still retains an estimated 90% stake in the company. The company agreed to pay $4.3 billion to settle charges related to violating US anti-money laundering laws. Prosecutors sought a three-year prison sentence, but Zhao’s attorneys argued that probation was more fitting given his acceptance of responsibility and philanthropic track record.
Meanwhile, another high-profile case involving Sam Bankman-Fried, CEO of FTX, has also come to light as he was sentenced to 25 years for a multibillion-dollar fraud scheme. Bankman-Fried was found guilty of siphoning off customer funds for high-risk investments. The rise and fall of these high-profile figures in the cryptocurrency industry serves as a cautionary tale for those who engage in illegal activities within this rapidly evolving market.