NAIROBI (CoinChapter.com)—Changpeng Zhao, the former CEO of Binance, will serve four months in prison for violating U.S. anti-money laundering laws. Despite this setback, Binance’s native token, BNB, has demonstrated remarkable resilience in the aftermath.
In a ruling on April 30, 2024, Judge Richard Jones of the U.S. District Court for the Western District of Washington sentenced CZ to four months in prison. This decision comes after Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti-Money Laundering (AML) program during his tenure at Binance.
Prosecutors Push for Stricter Sentencing
In the courtroom, the prosecution team pushed for a stricter sentence against Changpeng “CZ” Zhao, the former CEO of Binance, arguing that leniency would set a dangerous precedent for the cryptocurrency industry. They contended that Changpeng Zhao fostered a corporate culture at Binance that prioritized growth over regulatory compliance and that “incarceration is necessary” to deter similar behavior.
Prosecutors had sought a three-year sentence, arguing that CZ fostered a corporate culture at Binance that prioritized growth over regulatory compliance. They asserted that “incarceration is necessary” to deter similar behavior in the crypto industry.
“Incarceration is necessary to reflect the seriousness of the offense.” He added, “A probationary sentence here will incentivize others to break the law and to do it in the largest scale possible.”
Kevin Mosley
However, Zhao’s defense team countered with a request for probation, citing sealed documents that they claim contain mitigating factors. They also raised concerns that Zhao’s immense wealth could put him at risk in prison.
In a courtroom statement, CZ apologized for his actions during his time at Binance and indicated that he accepts responsibility for the exchange’s lack of a robust Anti-Money Laundering (AML) program.
“I’ve had a lot of quiet time alone to think and reflect.”
Ex Binance CEO Changpeng Zhao
BNB Weathers the Storm
In the aftermath, BNB initially dipped to $556.20 but swiftly recovered to $579.60, showing resilience. The token is currently consolidating near $550, above the 50-day simple moving average. A major bullish trendline forms at $526, supporting the potential for further upside.
According to CoinGecko, BNB’s live price is $578.29, with a 24-hour trading volume of $1.72 billion and a market capitalization of $85.34 billion. While down 2.93% in the last 24 hours, BNB’s all-time high of $686.31 suggests ample room for growth, especially given the positive legal outcome.
Technical analysis suggests BNB is consolidating near $550, above its 50-day SMA. A major bullish trendline offers support at $526, forming a potential price floor. However, a rising wedge pattern hints at a possible correction. Breaking above the wedge resistance could signal a renewed bullish surge. BNB’s recovery remains uncertain amidst these conflicting technical signals.
