The founder and former CEO of Binance, Changpeng Zhao, was sentenced to four months in prison after pleading guilty to violating US anti-money laundering and sanctions regulations last year. The founder of the world’s largest cryptocurrency exchange was once the most powerful crypto industry figure. U.S. District Judge Richard Jones in Seattle handed down the sentence, dismissing prosecutors’ plea for a three-year prison term for Zhao.
Zhao, originally from China, relocated to Canada in 1989 at the age of 12. The Chinese-born Canadian entrepreneur studied computer science at McGill University in Montreal, Quebec. In 2017, he launched Binance, securing $15 million via an initial coin offering. By 2023, Binance was responsible for approximately half of all spot trades conducted by centralised cryptocurrency exchanges.
Meet the world’s richest prisoner — Changpeng Zhao — the founder and former CEO of Binance whose staggering net worth will leave you amazed
Binance has faced multiple lawsuits for years. In November 2023, the company admitted guilt in a U.S. federal court to charges of money laundering and unlicensed money transmitting. Zhao’s imprisonment marks him as potentially the wealthiest individual to be jailed in the US, and possibly globally, because of his wealth of $43 billion (approximately Rs 3,59,029 crore), according to Bloomberg, which will remain unaffected. Zhao’s impact on the company will continue to be strong, with his close associates dominating the new board of directors. A key figure in running its operations is the mother of three of his children. Additionally, Zhao, the world’s richest prisoner, still retains a 90% stake in Binance.
Zhao’s punishment contrasts sharply with that of his former crypto competitor, Sam Bankman-Fried, who received a harsher sentence of 25 years in prison for offenses related to his crypto exchange’s operation. He was convicted of fraud when it was discovered that he had diverted billions of dollars in customer funds toward high-risk investments. Bankman-Fried established the FTX cryptocurrency exchange and garnered acclaim as a leading figure in the crypto world. His wealth peaked at $24 billion (approximately Rs 2,00,398 crore), securing the 41st spot among America’s wealthiest, according to Forbes Australia.
Among other popular jailed billionaires is Allen Stanford, who chaired the now-defunct Stanford Financial Group of Companies. In 2012, he received a 110-year sentence for carrying out the sale of $7 billion in fraudulent certificates of deposits through the Stanford International Bank in Antigua.
Meanwhile, Binance, which continues to operate without an official company headquarters, has been employing thousands of workers globally. Initially located in China, it later relocated to Japan before regulatory restrictions led it to Malta.
