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 and funds going to sanctioned countries.
The prison term was far less than sought by US prosecutors who wanted 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.
The defence had called for probation with no prison time for their client. A $50m (£40m) fine has already been paid by Zhao.
Despite the massive fine, he remains a billionaire and the wealthiest crypto executive, according to Forbes, with magazine putting his wealth at $33bn (£26.4bn).
Image: Changpeng Zhao
Zhao apologised before his sentencing at a court in Seattle, saying: “I failed here. I deeply regret my failure and I am sorry.”
But district judge Richard Jones told him: “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.”
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.
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2:11
Sam Bankman-Fried jailed for 25 years
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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 material and received the proceeds of ransomware cyberattacks.
The US Justice Department brought the case as part of its clamp down on criminal activity within cryptocurrency, best known for Bitcoin.
The pop of flash bangs and the drawing of rubber bullet launchers by police sent protesters scattering down streets in downtown LA during a fourth day of demonstrations against Donald Trump’s immigration policy.
Dozens of National Guard – America’s reserve force – carrying shields and long guns, created a perimeter around a federal building as protesters angrily shouted at them.
“National Guard out of LA,” they chanted, followed by a chorus of “shame, shame, shame”.
The arrival of National Guard troops on the streets, with a total of 4,000 now deployed by President Trump against the wishes of Californiagovernor Gavin Newsom, seems to have escalated tensions.
Image: Another 2,000 National Guard troops and 700 Marines are heading to Los Angeles on orders from US President Donald Trump
Image: First and second-generation immigrants tell Sky News they have to ‘defend’ LA
Los Angeles mayor Karen Bass described her city as a “test case” for Trump usurping the authority of local governments.
The news that 700 marines were also being mobilised, ready to deploy, was viewed by Democratic politicians as not just a gross overreaction to the situation but a cynical political ploy by the White House to stoke trouble.
Trump says they are needed to restore law and order.
Crowd control explosions were being deployed from the rooftops of the federal buildings towards protesters in a plaza below in a bid to disperse the crowd.
Many of those gathering are first and second-generation immigrants, mostly from Central and South America.
They are furious about the raids that took place last week. Dozens of immigrants were rounded up in LA’s garment district, an area packed with clothing wholesalers.
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2:18
Pandemonium and lawlessness on streets of LA
Bryanna Ordonez, 17, was protesting with friends. Her dad was among the 44 people arrested in the raids. He’d lived here – illegally – for more than 10 years.
“My father got deported on 6 June,” she said, holding back tears. “I’m here protesting for him and two of my uncles that were deported.
“Our parents worked so hard to get us here today just to be taken from us because they wanted us to have a better life. It’s so unfair.”
Image: Bryanna Ordonez, 17, tells Sky News her dad was among 44 people arrested in Friday’s raids
Giovanni Garcia is from South Central LA. His mother emigrated from Mexico 26 years ago, but she only received her Green Card last year.
“Everyone says LA is an immigrant city, and it is,” says Giovanni. “You go to Chinese restaurants, they have Hispanic workers in the back.
“You know, you go to the clothing companies, they have Hispanics working. Like, this is our city, and we have to stand here and defend it.”
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As dusk fell, the crowds thinned on the streets. A remaining hardcore of demonstrators were backed into a corner of downtown LA known as Little Tokyo.
As night fell, an hours-long standoff between police and protesters took place next to a pagoda and with the backdrop of a giant mural of LA Dodgers baseball star Shohei Ohtani, before, eventually, a number of them were arrested.
LA is a city known for sporting prowess, multiculturalism and a long history of resistance movements – the immigration protests of 2025 now among them.
Protests have entered their fourth day in Los Angeles. As people continue to clash with police, Trump has deployed the National Guard against the wishes of the Governor of California, Gavin Newsom.
Martha Kelner has been reporting from the streets of LA, seeing burning cars, tear gas, and people being hit with rubber bullets. Martha, Mark Stone, and James Matthews discuss the scenes in LA, and Trump’s reaction.
If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.
A shirtless man waving a Mexican flag stands atop a burning car in the heart of Los Angeles, as another man throws a traffic cone into the flames and some play drums and shout chants in opposition to immigration officials.
In the background, city hall can be glimpsed through a haze of thick black smoke.
The downtown district of one of America’s biggest cities was a scene of pandemonium and lawlessness as protests, which had previously been mainly peaceful, turned ugly.
Critics of Donald Trump said the president’s extraordinary decision to deploy National Guard troops, defying the wishes of the state’s governor, had inflamed tensions and stoked emotions.
Image: A protester throws a cone into a burning fire in LA. Pic: Reuters/Daniel Cole
The 101 Freeway, the main highway cutting through the downtown area, was also closed down for much of the day as police and protesters faced off, with flash bang devices sending some people scattering.
Bottles and other projectiles were hurled towards police, who responded by using tear gas and rubber bullets.
It was this chaos, his critics say, that Donald Trump wanted to provoke.
More on Los Angeles
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Image: California Highway Patrol officers try to dodge rocks being thrown. Pic: AP/Ethan Swope
Trump’s decision to call in 2,000 National Guard troops, several hundred of whom were on the streets of LA on Sunday, was taken without consultation with the California governor and LA mayor, and marked an extraordinary escalation by the president.
The military arrived on Sunday morning and was ordered to guard federal buildings, after two days of protest against Immigration and Customs Enforcement (ICE) officers.
As part of Trump’s closed border policy, ICE has been ordered to find, detain and deport as many illegal immigrants as possible, and it was these raids that stoked the first signs of protest on Friday into the weekend.
Image: Smoke rises as the National Guard clashed with protesters in downtown Los Angeles.
Pic: Reuters/Daniel Cole
By midday Sunday, the military was surrounded by protesters outside the Metropolitan Detention Centre in downtown LA. It was here that many immigrants had been held before being shipped off to detention facilities.
The walls and floors are covered in expletive-ridden graffiti, reading f*** ICE.
The Los Angeles police soon split the crowd and drove a wedge between the National Guard and the crowd.
California Governor Gavin Newsom has called Donald Trump’s acts those of a “dictator, not a president”.
Image: A police officer fires a soft round in Los Angeles. Pic: AP Photo/Eric Thayer
Image: Los Angeles Metro Police officers strike protesters during unrest in the downtown area of the city.
Pic: Reuters/Daniel Cole
He’s formally requested that the Trump administration withdraw the National Guard. The White House say the military will remain there until order is restored. Five hundred marines are still on standby.
Los Angeles Police Department police chief Jim McDonnell, asked whether the National Guard was needed, said: “This thing has gotten out of control.”
He said that although the LAPD would not initially have requested assistance from the National Guard, the disorder had caused him to reevaluate his assessment.
Image: US correspondent Martha Kelner is reporting from Los Angeles
Several people were arrested.
Sky News witnessed a young woman, who called herself Gabriella, riding her motorbike at speed towards a line of police officers.