The Binance Coin (BNB) price experiences volatility as Changpeng Zhao, the founder of Binance, faces a 4-month prison sentence for violating US anti-money laundering laws. Despite prosecutors’ claim for a three-year prison term, U.S. District Judge Richard Jones ruled for a much lighter imprisonment.
Changpeng Zhao pleaded guilty last year to breaching anti-money laundering rules. Later, U.S. prosecutors advocated for a harsher sentence than the 18-month maximum recommended by federal guidelines. They claimed Binance, under Zhao’s leadership, operated with a “Wild West” mentality, welcoming criminals and failing to report suspicious transactions linked to terrorism and child exploitation.
Zhao’s lawyers requested probation, citing his guilty plea, acceptance of responsibility, and a $50 million fine already paid. They pointed out his lack of prior criminal history and argued that similar cases typically result in probation. Over 160 letters submitted to the court depicted Zhao as a devoted father, philanthropist, and tech nerd with a disinterest in material wealth.
These letters aim to counter the prosecution’s portrayal and appeal for leniency. Studying these letters and considering Zhao’s acceptance of responsibility, the judge, on Tuesday, stated,
“The court finds the defendant has accepted responsibility. Everything I see about you and your characteristics are of a mitigating nature.”
Before the hearing, Zhao talked about the significance of accepting responsibility and recognizing one’s own faults. He admitted that he failed to set up a KYC (Know-Your-Customer) Program. He also missed implementing robust anti-money laundering rules. He stated, “I think the first step to taking responsibility is to fully recognize the mistakes.”
Meanwhile, BNB is experiencing a downward trend, with its price declining by over 6% in the last 24 hours. As of press time, BNB is trading at $546.07, marking 10% and 6% declines over the last week and month, respectively.
