A billion fine and prison. The former head of Binance received four months hard time

Zhao, known in the industry by his initials CZ, pleaded guilty last November to violating US anti-money laundering rules. In connection with this, he also agreed to pay a record fine of 50 million dollars (CZK 1.17 billion).

“I made mistakes and now I have to take responsibility for them,” Zhao said of the ruling that he enabled money laundering at the world’s largest cryptocurrency exchange. “I deeply regret my failure … I am sorry,” he added.

Zhao, Kwon and Mashinsky. Ex-bosses of cryptocurrency firms face prosecution

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However, Zhao’s lawyers insisted that a prison sentence was not at all appropriate. However, according to prosecutors, no one has yet violated the Bank Secrecy Act to the extent of the former head of Binance. That is why the prosecution wanted a significantly higher sentence.

The defendant previously agreed not to appeal the sentence.

Problems outside the US too

Whether the former CEO’s confession will end all of Binance’s problems in the US remains to be seen in the coming weeks and months. What is certain, however, is that the world’s largest crypto exchange is also solving problems in other markets.

At the end of last June, for example, the Belgian Financial Market Regulatory Authority (FSMA) targeted the crypto exchange, as reported by Reuters. He issued a decision according to which the largest cryptocurrency exchange in the world must immediately terminate all services provided in the field of virtual currencies in the territory of Belgium.

“Binance offers and provides exchange services in Belgium between virtual and fiat currencies, as well as wallet custody services from non-EEA countries. The authority has therefore ordered Binance to cease offering or providing any such services in Belgium with immediate effect,” the FSMA said in a statement.

Binance already meets EU anti-money laundering and anti-terrorist financing standards.

Also last year, representatives of Binance reported that they were leaving the Dutch market due to their failure to register with the local regulatory body as a virtual asset service provider.

“We regret to announce that Binance is ceasing operations in the Dutch market. From now on, we will no longer accept new users residing in the Netherlands,” the company announced last June.

Since then, Dutch users are only allowed to withdraw their assets from the platform. So they are not allowed to buy, trade or make deposits.

“Binance already meets EU anti-money laundering and anti-terrorist financing standards, as evidenced by its registrations in other European Union countries, including France, Italy, Spain, Poland, Sweden and Lithuania,” Binance said in a press statement last year.