In 2017, Binance was founded by Changpeng Zhao and quickly rose to prominence in the cryptocurrency trading market. However, recent news has brought attention to Zhao as he has been 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 past behavior and handed down a shorter sentence.
Zhao stepped down as CEO of Binance last year but still retains an estimated 90% stake in the company. In addition to facing legal issues, Binance also faced challenges when crypto markets collapsed and regulators began investigating its operations. This news comes on the heels of another high-profile case involving Sam Bankman-Fried, CEO of FTX, who 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.
Despite his legal troubles, Zhao remains one of the wealthiest individuals with a reported net worth of about $33 billion. His attorneys argued that probation was more fitting given his acceptance of responsibility and philanthropic track record. However, it is unclear what impact this will have on Binance’s future operations and how it will move forward without its founder at the helm.