In 2010, two years after adopting the shiba inu, Sato posted a picture on her blog of Kabosu crossing her paws on the sofa and giving the camera a beguiling look.

That image became the “Doge” meme – and later an NFT digital artwork that sold for US$4 million.

“She is pulling a weird face,” Sato laughs. “Now I think she looks really nice” in the famous photo but “at first I thought it could be trashed”.

The meme grew from an online forum post into an anarchic in-joke that bounced from college bedrooms to office emails.

“One of my friends messaged me: ‘Isn’t this picture Kabosu?’ Then I searched for it and found all sorts of memes, like Kabosu turning into a doughnut,” Sato says.

The 62-year-old is now so used to “unbelievable” events that when Tesla boss Musk changed the icon for Twitter, now X, to Kabosu’s face last year, she “wasn’t even that surprised”.

“In the last few years I’ve been able to connect the online version of Kabosu, all these unexpected things seen from a distance, with our real lives.”

Kabosu spends most days resting in a cart at the kindergarten or on a big cushion at home, where fan-made Doge tributes adorn the walls.

The memes typically use goofy broken English to reveal the inner thoughts of Kabosu and other shiba inu “doge” – usually pronounced like pizza “dough” but with a “j” at the end.

“Very love. Such star OMG. So heart. Much drawing,” says one framed print using this signature “doge speak”.

Kabosu fell ill with leukaemia and liver disease at the end of 2022, and Sato is sure the “invisible power” of prayers from fans worldwide helped her pull through.

Then, in November 2023, a US$100,000 statue of Kabosu and her sofa crowdfunded by Own The Doge, a cryptocurrency organisation dedicated to the meme, was unveiled in a park in Sakura.

Sato and Own The Doge have also donated large sums to international charities, including more than US$1 million to Save the Children. The NGO says it is “the single largest cryptocurrency contribution” it has ever received.

“The Doge is the most popular dog of the modern era,” says Tridog, a pseudonymous member of Own The Doge, describing Kabosu as “the Mona Lisa of the internet”.

Dogecoin was started as a joke by two software engineers and is now the world’s eighth most valuable cryptocurrency, with a market cap of US$23 billion.

“The Doge meme was pretty big on the internet in 2013 and I spent a lot of time on Reddit and other forums back then,” says Dogecoin co-founder Billy Markus.

Markus, who is no longer affiliated with Dogecoin, was amused by the “silliness and innocence” of the memes.

Fellow founder Jackson Palmer “drank a beer and saw the doge meme and bitcoin in the news and thought saying he was gonna invest in Dogecoin would make a funny tweet”, he said.

Markus found the idea hilarious and created the coin in “a few hours” before contacting Palmer and taking it live.

“Lots of weird stuff happened after that,” he says.

Since then, Dogecoin has been backed by stoner hip-hop king Snoop Dogg, Shark Tank entrepreneur Mark Cuban and rock band Kiss’ bassist Gene Simmons, who once tweeted: “I bought Dogecoin … six figures.”

But its most keen supporter is probably the billionaire Musk, who jokes about the currency on X – sending its value soaring – and hails it as “the people’s cryptocurrency”.

Dogecoin has also inspired a plethora of other cheap and highly volatile “meme coins”, including spin-off Shiba Inu and others based on dogs, cats or Donald Trump.

A solitary figure wearing a Doge mask looks out over the Los Angeles skyline – this is Tridog, who says he has “worked for a dog photograph for almost three years”.

Own The Doge is his full-time job, and he preaches its motto D.O.G.E, or “Do Only Good Everyday”.

In 2021, Sato sold the viral photo of Kabosu as a non-fungible token (NFT), a digital ownership certificate that can be traded online, to a group of cryptocurrency art collectors called PleasrDAO for US$4.2 million.

That makes it “a top-five most expensive photo ever sold”, Tridog says.

PleasrDAO split the NFT’s value into a brand-new meme coin called $DOG, allowing many people to collectively “own” the meme.

Own The Doge has brought fans and other meme stars to Japan to meet Kabosu and Sato, and it recently secured the intellectual property rights to the famous photo, paving the way to make Doge toys, films and other products.

As a rescue dog, Kabosu’s real birthday is unknown, but Sato estimates her age at 18 – past the average lifespan for a shiba inu.

When Kabosu dies, “the world will mourn”, Tridog says, but “a legend always lives on”.

He hopes people will remember “the deeper values” behind the Doge meme: “the wholesomeness, the silliness, the not taking yourself too seriously.”

Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating US money-laundering laws at the world’s largest cryptocurrency exchange.

The sentence was imposed by United States District Judge Richard Jones in Seattle, who rejected prosecutors’ request that the 47-year-old Zhao serve a three-year term.

Once considered the most powerful person in the cryptocurrency industry, Zhao, known as “CZ,” is the second major crypto boss to be sentenced to prison after Sam Bankman-Fried. In March, Bankman-Fried received 25 years behind bars for stealing eight billion dollars from customers of his now-bankrupt FTX exchange.

Zhao pleaded guilty in November to one count of failing to take required anti-money-laundering measures and stepped down as Binance agreed to pay $4.3bn to settle related allegations.

US officials said Zhao deliberately looked the other way as people conducted transactions that supported child sex abuse, the illegal drug trade and “terrorism”.

“I failed here,” Zhao said before US District Judge Richard A Jones issued the sentence. “I deeply regret my failure, and I am sorry.”

“I believe the first step of taking responsibility is to fully recognise the mistakes. Here I failed to implement an adequate anti-money-laundering program … I realise now the seriousness of that mistake”, he said.

Prosecutors had told the judge a tough sentence would send a clear signal to other would-be criminals.

“We are not suggesting that Mr. Zhao is Sam Bankman-Fried or that he is a monster,” prosecutor Kevin Mosley said. But Zhao’s conduct, he said, “wasn’t a mistake. This wasn’t a regulatory ‘oops.’”

The three-year prison term prosecutors sought was more than twice the guideline range for the crime. If he did not receive time in custody for the offence, no one would, rendering the law toothless, they argued.

Zhao had been free on a $175m bond, and agreed not to appeal any sentence within federal guidelines. Zhao also paid $50m to the Commodity Futures Trading Commission.

Trades in violation of US sanctions

Binance allowed more than 1.5 million virtual currency trades, totalling nearly $900m, that violated US sanctions, including ones involving Hamas’s Qassam Brigades, al-Qaeda and Iran.

“He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” the US Department of Justice wrote in a sentencing memorandum filed last week.

Zhao’s lawyers insisted he should receive no prison time at all, citing his willingness to come from the United Arab Emirates, where he and his family live, to the US to plead guilty, despite the UAE’s lack of an extradition treaty with the US.

No one has ever been sentenced to prison time for similar violations of the Bank Secrecy Act, defence lawyers Mark Bartlett and William Burck told the judge Tuesday, and Zhao began making changes to make Binance a model of compliance with banking transparency regulations before stepping down.

“There is no excuse for my failure to establish the necessary compliance controls at Binance,” Zhao wrote in a letter to the court. “I wish I could change that part of Binance’s story. But under my direction, Binance has now implemented the most stringent anti-money laundering controls of any non-US exchange, and those controls have been in place since 2022.”

Prosecutors said no one had ever violated the Bank Secrecy Act to the extent Zhao did.

“He says in hindsight he should have done a better job,” Justice Department lawyer Kevin Mosley told the court. “This wasn’t a mistake. When Mr Zhao violated the BSA he was well aware of the requirements.”

Zhao knew that Binance was required to institute anti-money-laundering protocols, but instead directed the company to disguise customers’ locations in the US to avoid complying with US law, prosecutors said.

Several other crypto moguls are also in the crosshairs of US authorities after the collapse of cryptocurrency prices in 2022 exposed fraud and misconduct across the industry.

Indian authorities, together with the FBI, have cracked down on a massive Rs 3,000 crore ($30 billion) scam involving digital currencies in Uttarakhand. This teamwork led to the arrest of two suspects accused of running an international drug trafficking ring.