A federal judge has sentenced Binance founder Changpeng Zhao to four months in prison. Prosecutors had recommended three years. Zhao pleaded guilty in November to violating the Bank Secrecy Act.
Binance CEO Changpeng Zhao is set to plead guilty to federal money laundering charges and step down from his position at the crypto exchange. Binance will also pay $4.3 billion as part of a government settlement.
The SEC and Binance have reached an agreement that will allow the cryptocurrency exchange to continue operating in the US until a lawsuit filed by the regulator earlier this month is resolved.
Cryptocurrency exchange Binance reportedly mixed its revenue with customer funds at a US bank in 2020 and 2021. Under US financial regulations, customer money must be kept separate from corporate funds.
According to Bloomberg, the agency is looking into whether the cryptocurrency exchange allowed Russian customers to move money as a way to go around US sanctions on the country's financial institutions.
Binance, the world's leading cryptocurrency exchange, is reportedly being probed by the DoJ and IRS amid allegations that it is being used to launder money.