Changpeng Zhao Sentenced to Four Months in Jail

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Hey folks.

Changpeng Zhao, the founder of the largest crypto exchange Binance has been sentenced to four months in jail in the United States for allowing money laundering on its platform to criminals.

In November, Changpeng Zhao resigned from Binance pleading guilty to violating the United States money laundering laws.

Founding the platform helped users bypass sanctions after a United States investigation Binance was ordered to pay $4.3 billion.

A three year sentence in respect of the former founder of Binance had been sought by the prosecutors.

In November, according to the United States officials Changpeng Zhao and Binance’s "wilful violation" of its laws had threatened the United States financial system and national security.

Treasury Secretary Janet Yellen stated, "Binance turned a blind eye to its legal obligations in the pursuit of profit".

According to Forbes magazine, Changpeng Zhao has a fortune of $33 billion.

Authorities is Nigeria are also currently investigating Binance, registered in the Cayman Islands.

In early April, a Nigerian court heard a denial of money laundering allegations from Tigran Gambarayan, the Binance employee in charge of financial crime compliance.

Fellow executive Nadeem Anjarwalla, who was arrested in Nigeria in February with Mr. Gambarayan, managed to get out of detention in March.

The sentencing of Changpeng Zhao comes shortly after the former CEO of FTX Sam Bankman Fried was sentenced to 25 years in jail for committing fraud at FTX.

Sam Bankman Fried was found to have stolen billions of dollars from the customers ahead of the collapse of FTX.

According to the Justice Department, during its investigation into Binance, it was discovered that the exchange made money transfers for criminals easy.

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