In 2017, Binance was founded by Changpeng Zhao and quickly became a major player in the cryptocurrency trading market. However, recent news has brought Zhao’s past actions into the spotlight as he was 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.
Despite stepping down as CEO of Binance last year, Zhao still retains an estimated 90% stake in the company. In addition to his legal troubles, Binance agreed to pay $4.3 billion to settle charges related to violating US anti-money laundering laws. 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.