Binance crypto billionaire sentenced to four months in prison

A federal judge sentenced former Binance CEO Changpeng Zhao to four months in prison on Tuesday, after pleading guilty last year to violating American money-laundering laws.

Zhao created Binance, the world's largest cryptocurrency exchange, and last year pleaded guilty to an array of charges that accused him of putting the company's growth over compliance with the law. The plea deal forced Zhao to step down as CEO, and pay $200 million in penalties, Politico reported.

Prosecutors argued that prioritizing the company's growth made the platform a hotspot for terrorist organizations, hackers, and human traffickers that were looking to move money illegally.

“You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity,” U.S. District Judge Richard Jones said to Zhao in his sentencing, according to Reuters.

Jones's sentence was notably less than the three years that prosecutors were seeking, but more than the probation that the defense sought. 

Zhao apologized for his actions in a statement to the judge prior to sentencing.

“I believe the first step of taking responsibility is to fully recognize the mistakes,” Zhao told the judge, the outlet reported. “Here I failed to implement an adequate anti-money laundering program... I realize now the seriousness of that mistake.”

The sentence marks the latest in a federal crackdown on cryptocurrencies and crypto exchanges. Former FTX founder and CEO Sam Bankman-Fried was sentenced to 25 years in prison in March, for stealing $8 billion from his customers.