Changpeng Zhao, the founder of Binance, has become the richest person to serve time in a U.S. federal prison. His four-month sentence stems from failing to establish adequate anti-money laundering protocols at the exchange. Despite stepping down as CEO last year, CZ remains a major figure in the crypto world, where legal troubles have plagued other prominent figures like Sam Bankman-Fried and Do Kwon.
Tigran Gambaryan, a Binance executive and U.S. citizen, is reportedly in critical condition while detained in a Nigerian prison. His family is urgently seeking his release, citing deteriorating health and lack of proper medical treatment. The situation highlights escalating tensions between Binance and Nigerian authorities.
Binance, a leading cryptocurrency platform, will pay a hefty fine of Rs 18.82 crore to the Financial Intelligence Unit (FIU) to restart its operations in India. The penalty comes after the FIU found Binance operating in the country in violation of anti-money laundering regulations. This move follows a similar situation with KuCoin, another crypto exchange, which paid Rs 34.5 lakh to gain full registration and resume operations.
US prosecutors are seeking a three-year prison sentence for Binance founder and former CEO Zhao Changpeng after his guilty plea to money laundering charges. Prosecutors argue that Zhao’s violations were willful and severe, while his lawyers request probation. The sentencing hearing is scheduled for April 30th, and Binance has already agreed to a $4.32 billion criminal penalty.
U.S. prosecutors have filed a sentencing memorandum recommending a 36-month prison sentence for the former CEO of cryptocurrency exchange Binance, Changpeng Zhao. The recommendation exceeds the suggested guideline range of 12 to 18 months, citing the gravity of Zhao’s alleged crimes. Prosecutors accuse Zhao of willful failure to implement anti-money laundering protocols and allowing Binance to process transactions involving unlawful activity, including those subject to sanctions. The sentencing hearing is scheduled for April 30th.
Federal prosecutors are urging a three-year prison sentence for Binance founder Changpeng Zhao, arguing that it is necessary to deter similar illegal activities within the financial industry. Zhao previously pleaded guilty to violating federal money laundering laws and sanctions. The prosecutors emphasize the severity of Zhao’s actions, including his deliberate decision to bypass U.S. regulations for financial gain. The sentence recommendation is significantly higher than the maximum of 18 months under federal guidelines, but prosecutors contend it is justified due to the magnitude of Binance’s violations.
Binance, the world’s largest cryptocurrency exchange, has seen its market share for bitcoin trading outside the US decline over the past year. This shift is attributed to Binance’s decision to end a promotion that eliminated trading fees and the growing prominence of smaller exchanges. Notably, Bybit and OKX have significantly increased their shares of the non-US bitcoin trading market, with Bybit reaching 9.3% and OKX accounting for 7.3%. As Binance focuses on rebuilding its reputation under increased regulatory scrutiny, the digital-asset industry has witnessed a surge in trading volumes driven by the fourfold increase in the bitcoin price since the beginning of 2023.
Binance, the world’s largest cryptocurrency exchange by volume, is facing a fresh legal battle in Ontario, Canada. The Superior Court of Justice in Ontario has filed a class action lawsuit against the cryptocurrency exchange, alleging that it sold crypto derivative products to retail investors without registration, violating securities laws. The lawsuit seeks both damages and rescission for the affected trades, accusing Binance of failing to comply with necessary registrations and prospectus filings as stipulated by securities regulations.
The Ontario Securities Commission had previously issued warnings to Binance, and their investigations continue despite the exchange’s departure from Canada. The lawsuit accuses Binance of selling crypto derivative products to retail investors without proper registration, contravening the Ontario Securities Act (OSA) and federal law. The charges claim that Binance’s actions have harmed Canadian investors, seeking damages and rescission of the alleged unlawful trades. This case highlights the regulatory complexities surrounding cryptocurrency exchanges and the need for adherence to securities laws, especially for retail investor protection. Binance’s response to the allegations will be closely monitored as it faces similar legal challenges in numerous countries, including the United States.
