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Changpeng Zhao, former chief executive officer of Binance, arrives at federal court in Seattle, Washington, US, on Tuesday, April 30, 2024. 

David Ryder | Bloomberg | Getty Images

Binance’s billionaire founder Changpeng Zhao was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at his crypto exchange.

“You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity,” U.S. District Judge Richard Jones said to Zhao in a Seattle federal court, according to a Reuters report.

The sentence handed down to the former Binance chief was significantly less than the three years that federal prosecutors had been seeking for him. The defense had asked for five months of probation. The sentencing guidelines called for a prison term of 12 to 18 months.

“I’m sorry,” Zhao told the judge before receiving his sentence, per Reuters.

“I believe the first step of taking responsibility is to fully recognize the mistakes,” Zhao reportedly said earlier Tuesday in court. “Here I failed to implement an adequate anti-money laundering program… I realize now the seriousness of that mistake.”

In November, Zhao, commonly known as CZ, struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world’s largest cryptocurrency exchange. As part of the settlement, Zhao stepped down as the company’s CEO. Though he is no longer running the company, Zhao is widely reported to have an estimated 90% stake in Binance.

Zhao, who wore a dark navy suit with a light blue tie to court, is accused of willfully failing to implement an effective anti-money laundering program as required by the Bank Secrecy Act, and of allowing Binance to process transactions involving proceeds of unlawful activity, including between Americans and individuals in sanctions jurisdictions.

The U.S. ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a $50 million fine.

Binance has separately been sued by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over the alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S.

The action against Binance and its founder was a joint effort by the Department of Justice, the CFTC and the Treasury Department, though the SEC was notably absent.

A Binance spokesperson said in a statement to CNBC that the crypto exchange is “proud of the culture of compliance, security, and transparency we have created over the past several years, and we look forward to building on that culture as we continue to evolve.”

Changpeng Zhao, former chief executive officer of Binance, arrives at federal court in Seattle, Washington, US, on Tuesday, April 30, 2024. 

David Ryder | Bloomberg | Getty Images

The spokesperson said the company has made “considerable compliance enhancements,” including with regards to anti-money laundering detection and “hiring key compliance personnel.”

A lawyer for Zhao did not immediately respond to CNBC’s request for comment.

Prosecutors say Zhao violated U.S. law on an “unprecedented scale,” and that he had a “deliberate disregard” for Binance’s legal responsibilities.

In a memorandum on Apr. 23, prosecutors said that under Zhao’s control, Binance operated on a “Wild West” model.

“Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime,” the memorandum stated. “But Zhao was caught, and now the Court will decide what price Zhao should pay for his crimes.”

Sam Bankman-Fried faces up to 50 years in prison at sentencing hearing

Zhao has gotten off much easier than former crypto rival Sam Bankman-Fried, the founder and ex-CEO of FTX.

Bankman-Fried was sentenced to 25 years in prison for crimes connected to the operation of his crypto exchange. Unlike Zhao and the charges brought against Binance, Bankman-Fried’s bankrupt exchange faced allegations of fraud and misuse of customers funds.

Braden Perry, a former senior trial lawyer for the CFTC, said that behavior is typically viewed as more deceitful and financially damaging to a broader array of people than compliance failures.

“CZ’s case seems to focus on regulatory and compliance failures, while SBF’s case hinges on direct financial misconduct and deception,” continued Perry. “Compliance failures, while serious, might be seen as a failure of oversight rather than active malfeasance.”

WATCH: New Binance CEO building robust compliance program

New Binance CEO: Building a robust compliance program after an immature past

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The ‘most affordable’ DIY e-bike kit company just launched a new $349 version

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The 'most affordable' DIY e-bike kit company just launched a new 9 version

Swytch, makers of the self-proclaimed “most affordable” electric bike conversion kits out there, announced its newest model this morning. The UK-based company’s new Swytch GO kit comes with a super low pre-order price of just £299 (or US $349 for North American customers), though there’s a bit of a catch.

The catch is that’s the pre-order price if you don’t mind joining a waitlist, or you can pony up twice that figure for an immediate purchase.

Swytch has previously been overwhelmed by demand when the company has released past versions, and so this might be a way to smooth out production curves and moderate all of the immediate demand they see when launching new models.

One of the reasons Swytch has been so popular during past releases is that ultra-affordable entry price, though the sleek design and ease of installation surely don’t hurt sales either. With over 85,000 Swytch kits already on the road, according to the company, DIY electric bike conversions still seem as popular as ever.

As Swytch’s CEO Oliver Montague commented:

“This is an exciting time for Swytch. Consumers are looking for more affordable and sustainable transport options, and the Swytch GO Kit is the ideal solution. Installation has also never been easier, so anyone can enjoy the benefits that electric bikes have to offer.”

With the new Swytch GO kit announced this morning, the 250W front motor remains unchanged from previous versions of the kit, but a new velcro-mounting GO battery has been added, offering more mounting options.

The previous Air battery, which is still available as an alternative option to the GO battery, was mounted directly to the handlebars. With the GO battery, riders can now mount the battery inside of the front triangle. The increased mountain options make it easier to fit the kit on different styles of bikes.

Additionally, the GO battery comes in three versions of GO, GO+, and GO++, offering anywhere from 15 to 60 miles (25-100 km) of pedal-assist range. The Air battery was famous for being small enough to just about be carried in a rider’s pocket, though the GO batteries are still quite small and can easily be tucked in a bag to avoid being left on the bike in theft-prone areas.

Weighing between 2-2.6 kg (4.5-5.7 lb) depending on the model, the GO batteries are fairly lightweight and easy to handle. They’re also IPX6 rated to withstand all-weather riding, and are certified to UL standards for safety.

With just 250W of power from that front hub motor, the Swytch GO kit is designed for cycling-ready commuters who are already comfortable with pedal assist. However, throttle-loving riders will be happy to know that an optional hand throttle is offered as an accessory. It can be added to the kit (where allowed by law) to offer throttle riding with power on demand that doesn’t require pedaling to initiate.

It’s all part of Swytch’s efforts to continually update the technology and the practicality of their kits, as the company’s CTO Dmitro Khroma explained:

“Our company mission is to make e-bikes accessible to everyone. So in reaction to consumer economic pressures, we wanted to bring down the entry-level price point for customers to pre- order a Swytch kit to just £299, but without compromising on quality, performance, or the safety of our batteries. These quality and safety features include ensuring that the battery is water-resistant, impact-resistant, and shock-resistant, and has been thoroughly tested to the highest standards so they are safe to use and recharge at home.

By redesigning the battery pack with a larger form factor, embedding the power electronics inside the pack together with the battery, and designing a super-simple mounting solution that uses Velcro straps to strap the battery pack anywhere on the bike, we managed to bring down the price significantly. Plus, as an added bonus, the result was an e-bike kit that is even easier and faster to install, and with increased range of up to 60 miles.”

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Is this the interior of Tesla’s upcoming ‘Robotaxi’?

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Is this the interior of Tesla's upcoming 'Robotaxi'?

Tesla has released a new video that includes some footage of a previously unseen vehicle interior. Could it be an early concept of the interior of the Robotaxi?

For the last few years, Tesla has been working on a vehicle designed from the ground up to be a self-driving vehicles. The company has been referring to it as ‘Robotaxi’.

CEO Elon Musk insists that Tesla is still dedicated to delivering its promised self-driving capability to existing vehicles delivered since 2016 through software update, but it also decided to build a new vehicle designed entirely around the fact that it will be driverless.

Not much is known about the vehicle other than hints that it won’t have a steering wheel or pedals, and that it will be “Cybertruck-like” in terms of design.

Now, Tesla has released a new video, which Musk wanted to make clear he wasn’t involved in, to try to encourage shareholders to vote for his $55 billion compensation package and moving the company’s state of incorporation to Texas:

In the video, many pointed out a shot of the interior of a vehicle that doesn’t match anything Tesla has released to date:

The image shows what appears to be a two-seater vehicle without steering wheel and a center display similar to what is found in current Tesla vehicles.

The seats are unlike what you would find in modern vehicles and something closer to what you would find in public transit, like a train:

Tesla plans to unveil its ‘Robotaxi’ on August 8th. The automaker has recently accelerated its timeline for the vehicle and plans to bring it to market as soon as next year.

Do you think this is an early concept for the Tesla Robotaxi interior? Let us know in the comment section below.

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Mercedes-Benz High-Power Charging just opened more DC fast chargers at Buc-ee’s stores in the Dallas-Forth Worth area.

Three new Mercedes DC fast charging stations are at Buc-ee’s in Fort Worth, Temple, and Royse City. Mercedes asserts that every one of its chargers offers up to 400 kW of power.

It’s also adding 12 more charging stations at Buc-ee’s in the Dallas-Fort Worth, San Antonio, and Houston metro areas – also known as the Texas Triangle, home to 68% of Texans:

Buc-ee’s isn’t your typical convenience store – they’re huge, with some stores covering over 50,000 square feet, and they offer a wide variety of items, including snacks, beverages, fresh food, clothing, home decor, and Texas-themed merchandise. It’s known for its homemade fudge, jerky, and beaver nuggets (caramel-coated corn puffs). Most Buc-ee’s locations are open 24 hours a day, seven days a week.

In November 2023, Mercedes announced it had made an agreement with Buc-ee’s to build EV charging hubs at most of its existing stores. Mercedes is aiming to have around 30 online by the end of the year. There are currently 48 Buc-ee’s locations across the US South, 34 of which are in Texas.

When I spoke to Mercedes-Benz High Power Charging CEO Andrew Cornelia last year, he was passionate about the importance of placing EV chargers near amenities that travelers need.

Mercedes offers open access for all EV drivers, including roaming with other charging networks. Its charging hubs support contactless payments with credit cards or smartphone wallets.

The first Mercedes DC fast charging station came online last November at its headquarters in Sandy Springs, Georgia. Mercedes-Benz plans to deploy 2,500 high-powered chargers in 400 hubs by 2027.

Texas is the US’s No. 1 producer of clean energy and ranks fourth in public EV charging. However, to meet driver demand, the state needs around 95,000 more public chargers by 2027.

Read more: America, Mercedes-Benz wants you to indulge in retail therapy while you’re DC fast charging


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