Changpeng Zhao, a founder of Binance, a crypto exchange that is the largest in the world, will be sentenced on the 30th of April at a Washington state federal court.
This sentencing takes place after CZ guilty pleaded in November 2023 to the charge of the failure to maintain an AML program at Binance. This charge is among other charges agreed upon under a deal with the US government that also includes CZ resigning as a CEO and Binance paying a $4.3 billion settlement.
This penalty was administered after a court of law found Samuel Bankman-Fried (SBF), the founder of an insolvent FTX exchange, guilty of defrauding investors and sentenced him to 25 years in jail.
Although both of them were influential persons in the crypto industry, the allegations made against them are quite different from each other.
CZ, on the other hand, is staring at a maximum of 18 months in prison but SBF’s charges enabled the prosecution to seek a more severe sentence.
Other Developments in the Crypto Space
This, according to the prosecutors, is the reason behind the users’ ability to create an account with just an email address and the money transactions that remained within cryptocurrency.
It was said that if some withdrawal limits were in place, they could easily be bypassed. Although Binance began to tighten its customer verification policies in 2021, it did not seem to make any amends for past wrongdoing.
Binance, the world’s largest cryptocurrency exchange, has recently announced the appointment of four new board members following a change in leadership.
This legal issue that followed later on, Binance, which has a new management in place, just recently announced its first board of directors. On the other hand, this board was criticized because it was mainly composed of insiders.
The crypto space saw legal developments in New York where Avraham Eisenberg, the accused manipulator of Mango Markets, will have his trial on April 3rd.
In the same vein, the Celsius and Terraform Labs founders are due to appear in Manhattan federal court shortly.
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