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Binance Founder Gets Four Month Prison Sentence
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Binance Founder Gets Four Month Prison Sentence

Story Highlights

Binance founder Changeng Zhao was handed a four-month prison time, much lower than the three-year term sought by U.S. prosecutors.

The world of cryptocurrencies is breaking new ground this year with crypto-based exchange-traded products making inroads into the U.S., U.K., and now the Hong Kong markets. However, the series of unfortunate events for Binance (BNB-USD) and its founder, Changpeng Zhao, is a different story altogether.

A Lower Prison Term

This week, the federal court in Seattle handed Zhao a four-month prison sentence, a much lower term than the three-year sentence sought by U.S. prosecutors. Last year, Binance was handed $4.3 billion in penalties for violating U.S. anti-money-laundering norms and sanctions. At that time, Zhao pleaded guilty and stepped down as Binance’s CEO.

Notably, Zhao’s sentence marks the first instance of a company’s CEO being sent to prison for the violation of bank secrecy norms. Importantly, the sentence concludes the long-drawn DOJ (Department of Justice) investigation into Binance and Zhao.

The other major crypto probe to hog the limelight in recent times has been the collapse of FTX and the 25-year sentence handed to its founder, Sam Bankman-Fried.

The Richest U.S. Inmate Ever

Meanwhile, Zhao plans to wrap up this “phase” of his life and remain a passive investor in crypto. Still, Zhao will continue to benefit from his ownership of Binance, which remains a top name in the world of crypto. According to Bloomberg, Zhao is set to become the richest U.S. inmate ever.

Is BTC Expected to Rise?

Zhao’s personal fortune was pegged at roughly $43 billion at last check, and the number could only balloon this year amid a major rally in cryptocurrencies. Meanwhile, Bitcoin (BTC-USD), the oldest cryptocurrency in the world, is up a massive 123% over the past year, and the TipRanks Technical Analysis tool continues to flash a Strong Buy signal for Bitcoin. The Binance coin (BNB-USD) is also up by nearly 77% over the past year.”

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