Former boss of world's largest crypto exchange jailed

The former boss of the world's largest cryptocurrency exchange has been jailed for four months for allowing money laundering.

The sentence was handed down to Binance founder Changpeng Zhao, nicknamed CZ, after he pleaded guilty to breaching US anti-money laundering laws designed to prevent terrorist financing.

US prosecutors had sought a three-year term - twice the maximum 18 months recommended under federal sentencing guidelines - to be tough on the man once thought to be the most powerful person in the crypto world.

A $50m (£40m) fine has already been paid by Mr Zhao.

He is the second major crypto boss to go to prison. Last month, the founder of FTX Sam Bankman-Fried was sentenced to 25 years for stealing billions of dollars from the now-bankrupt crypto exchange.

Bankman-Fried has appealed against his conviction and his sentence.

Mr Zhao stepped down from his role at Binance in November after he and the company admitted evading requirements under the US Bank Secrecy Act.

The company agreed to a $4.3bn (£3.4bn) penalty as prosecutors said it used a "wild west" model that failed to report 100,000 suspicious transactions involving terrorist groups.

Prosecutors had also said Binance supported the sale of child sexual abuse materials and received the proceeds of ransomware cyberattacks.

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