The creator of the biggest cryptocurrency exchange in the world received a four-month prison sentence for enabling money laundering on his site.
Changpeng Zhao entered a guilty plea to charges of breaking US money laundering regulations and resigned from Binance in November.
A US investigation revealed that Binance assisted customers in evading sanctions, leading to an order for the payment of $4.3 billion (£3.4 billion).
The former CEO of Binance was the target of a three-year sentence from the prosecution.
According to the Verge, Zhao prioritized “Binance’s growth and profits over compliance with US laws and regulations” at a sentencing hearing on Tuesday in Seattle, according to Judge Richard Jones.
The US financial system and national security were put at risk by Binance and Zhao’s “wilful violations” of US regulations, according to US officials in November.
According to Forbes magazine, Zhao, also known by his nickname “CZ,” is worth $33 billion.
The company has been registered in the Cayman Islands, and Nigerian officials are actively looking into it as well.
In early April, a Nigerian court heard a denial of money laundering allegations from Tigran Gambarayan, the Binance employee in charge of financial crime compliance.
Coworker Nadeem Anjarwalla, who was arrested in Nigeria in February with Mr. Gambarayan, managed to get out of detention in March. Sam Bankman-Fried was recently sentenced to 25 years in jail for fraud at his rival cryptocurrency company, FTX. Zhao’s sentencing follows shortly after.