Hangpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, was recently sentenced to four months in prison.
The 47-year-old former CEO of a major cryptocurrency exchange received the sentence in Seattle for violating United States’ anti-money laundering and sanctions laws last year.
Despite his conviction, Zhao remains a significant figure in the crypto industry and is also the wealthiest person ever to be imprisoned in the US, with a net worth of $43 billion.
This marks the second instance of a major crypto boss being sentenced to prison after Sam Bankman-Fried of FTX. Bloomberg also notes that Zhao’s wealth is expected to grow during his time in prison due to the ongoing crypto bull run.
Although he has stepped down as Binance’s CEO, Zhao still holds approximately 90% stake in the company, and reportedly, many of his close friends sit on its board of directors.
Zhao received a shorter prison term than what prosecutors sought, thanks to US District Judge Richard Jones, who opted for a sentence below the maximum recommendation of one to one and a half years under federal guidelines.
In contrast, FTX boss Bankman-Fried has been sentenced to 25 years behind bars, though he is currently appealing his conviction and sentence.
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