Business Desk
May 15, 2024
Changpeng Zhao, the founder of the world's largest cryptocurrency exchange, Binance, received a four-month prison sentence earlier this month in Seattle. The 47-year-old former CEO pleaded guilty last year to violating US anti-money laundering and sanctions laws.
This sentence makes Zhao a unique case. Despite his hefty prison term, he remains the richest person ever incarcerated, with a net worth estimated at a staggering $43 billion according to Bloomberg. This also marks the second major crypto boss to be imprisoned, following Sam Bankman-Fried of FTX who received a 25-year sentence (though he is appealing).
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Interestingly, Bloomberg reported that Zhao's wealth might even increase during his prison stint due to the ongoing crypto bull run. Additionally, while he stepped down as CEO, Zhao reportedly retains a significant stake (around 90%) in Binance, with close associates holding positions on the board.
Judge Richard Jones acknowledged the severity of the case but ultimately sentenced Zhao to a shorter term than prosecutors requested. Federal guidelines suggested a maximum of one and a half years. This sentence falls far short of Bankman-Fried's 25 years, although it remains to be seen if either sentence will stand.
