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FULL DETAILS: Why Binance founder, Changpeng Zhao, Was Sentenced to 120-day Prison Term

Binance founder, Changpeng Zhao, sentenced to 120-day prison term...Continue The Full Reading.

Binance founder, Changpeng Zhao, has been handed a four-month prison sentence due to lapses that enabled cybercriminals and terrorist organizations to operate freely on the globe’s leading cryptocurrency exchange.

The ruling, delivered by US District Judge Richard Jones in Seattle on Tuesday, underscores the gravity of Zhao’s regulatory oversights.

Presenting himself in a somber demeanor, clad in a dark suit complemented by a light blue tie, the billionaire was accompanied by a retinue of legal counsels as he entered the courtroom.

With his mother and sister observing the proceedings from the front row, as reported by Verge’s live stream of the hearing, the gravity of the moment was palpable.

Prosecutors, in their sentencing memorandum, pushed for an extended three-year incarceration term-twice the standard guideline of 18 months-citing the extensive impact of Zhao’s transgressions. Conversely, Zhao’s legal team countered with a plea for no custodial sentence, citing the absence of precedent for imprisonment in similar Bank Secrecy Act cases.

Judge Richard Jones, in his assessment, underscored Zhao’s prioritization of Binance’s expansion and profitability over adherence to US regulatory statutes. While expressing doubt regarding Zhao’s likelihood of repeating such infractions, Judge Jones emphasized the sheer scale of the wrongdoing.

Changpeng Zhao’s crime

While not as widely recognized as FTX’s Sam Bankman-Fried, Changpeng Zhao holds significant sway within the cryptocurrency realm. The Chinese-Canadian entrepreneur established Binance in 2017, emerging as a pivotal figure in the industry’s evolution.

Alarming revelations surfaced during legal proceedings, indicating that Binance facilitated sanctions breaches totaling over $898 million, a transgression described by prosecutors as an unprecedented violation of US law.

Zhao, alongside fellow Binance executives, ‘displayed a flagrant disregard for US regulatory’ frameworks, notably the Bank Secrecy Act (BSA), and failed to institute effective anti-money laundering measures.

Consequently, Iranian clients conducted illicit transactions amounting to at least $1.1 million with US counterparts, breaching sanctions protocol. Similar infractions were observed with other sanctioned nations, including Cuba and Syria.

Backstory

Changpeng Zhao’s federal lawsuit was filed by victims of the terrorist group, Hamas, over the alleged facilitation of violence.  The legal action was initiated by Judith Raanan, an American mother who endured captivity by Hamas in Gaza, and the families of Itay Glisko and Dr. Daniel Levi Ludmir, victims of the October 7 attack.

The lawsuit, filed in Manhattan, also named Iran and Syria as defendants.

The core allegation is that Binance allowed Hamas to conduct trade on its platform, contributing to the financing of violent attacks and the recruitment of individuals for these attacks.

Plaintiffs, represented by lawyer Robert Seiden, expressed confidence that the victims were entitled to substantial damages under US law, including the anti-terrorism act. Seiden emphasized their commitment to holding those who aided terrorism accountable.…Continue Full Reading.>’.

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