Crypto

Former Binance CEO CZ sentenced to four months

Published

2 years ago

April 30, 2024

Former Binance CEO CZ sentenced to four months

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.

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Crypto

Binance Research: April DeFi Exploits Triggered $13 Billion in Outflows

Published

4 hours ago

June 16, 2026

Press Room

Binance Research: April DeFi Exploits Triggered Billion in Outflows

Key Takeaways

A $13 Billion Wipeout in Days

Binance Research reported that April’s decentralized finance ( DeFi) exploits triggered around $13 billion in outflows, draining total value locked (TVL) across lending markets and decentralized exchanges. The flight pushed the onchain leverage ratio to about 38%, a reading the firm said marks a return to 2021 levels all while showcasing a massive decline in investor confidence.

Image source: X

The outflows can largely be traced back to a cluster of attacks, the largest of which struck liquid- staking protocol KelpDAO. Bitcoin.com News reported that KelpDAO had slammed Layerzero after a roughly $300 million exploit, later shifting its rsETH token to Chainlink’s cross-chain protocol, CCIP, in response.

The breach also rattled the wider ecosystem with lending protocol Aave battling a withdrawal crisis as depositors rushed for the exits. Confidence cracked further when Aave suffered a 44% monthly drop in value locked and outflows spread to neighboring protocols.

The attack’s mechanics unearthed a growing cross-chain threat with Layerzero, most recently, disclosing a remote procedure call (RPC) poisoning incident linked to the $292 million KelpDAO hack, in which attackers corrupted the data feeding the bridge’s verification network.

A Record Month for Hacks

April stood out even in a sector accustomed to breaches as industry trackers counted more than 20 separate exploits during the month, making it one of the most-hacked stretches on record. Aave alone saw billions in deposits exit within 48 hours, and several protocols paused certain operations as trust eroded.

Even then, the sector has shown resilience, with several protocols migrating cross-chain messaging to alternative providers and tightening verification. Binance Research and other analysts have argued that DeFi is evolving, citing the speed at which liquidity has historically returned as confidence has stabilized.

The 38% leverage reading is the figure to watch next, given that a return toward 2021 levels could mean the system has deleveraged sharply (potentially reducing the risk of forced liquidations and signaling diminished risk appetite). In any case, whether deposits rebuild from here will determine if April marked a temporary shock or a longer reset for onchain finance.

Crypto

New ‘Pig Butchering’ Scam Targets Bergen County Residents, Prosecutors Say

Published

14 hours ago

June 15, 2026

Press Room

New ‘Pig Butchering’ Scam Targets Bergen County Residents, Prosecutors Say

He said the Financial Crimes Unit is hard at work tracking the fraudsters, shutting down their websites, and hoping to bring them to justice.

There are various types of “pig butchering” scams, according to the federal government. They slowly play on the investor’s emotions and hopes.

“It is a type of confidence and investment fraud in which the victim is gradually lured into making increasing monetary contributions, generally in the form of cryptocurrency,” says the Office of Inspector General’s website, “to a seemingly sound investment before the scammer disappears with the contributed monies.”

If you are a victim of a scam, Becker said, contact your local police department. More information about that is here.

RELATED: Grandma Conned Into Mailing $10K Cash To Teaneck In ‘Grandparent Scam’

Crypto

Bitcoin Tops $66K as US-Iran Deal Triggers Risk-on Rally Across Markets

Published

1 day ago

June 15, 2026

Press Room

Bitcoin Tops K as US-Iran Deal Triggers Risk-on Rally Across Markets

Key Takeaways

Bitcoin Spikes to $66,600

Bitcoin traded over $66,600 as of Monday morning at 9 a.m. Eastern time, up approximately 3.5% over recent sessions and more than 11% off early-June lows near $59,375. Ethereum climbed to $1,774, gaining roughly 6.5% in the same stretch. XRP added 8.7% and solana ( SOL) rose 7.4%, while the total crypto market capitalization held above $2.35 trillion.

The rally tracked closely with broad risk-on sentiment fueled by weekend geopolitical developments and the continued afterglow of SpaceX’s blockbuster Nasdaq debut.

U.S.-Iran Framework: What’s Known

President Donald Trump announced Sunday via Truth Social that “The Deal with the Islamic Republic of Iran is now complete,” citing an immediate, toll-free reopening of the Strait of Hormuz and the removal of the U.S. naval blockade on Iranian ports.

U.S. and Iranian officials, along with Pakistani mediators, confirmed they have reached an agreed text for a preliminary memorandum of understanding. The framework extends a ceasefire for 60 days, opens the Strait immediately, and defers nuclear program details to follow-on talks. A formal signing is targeted for Friday, June 19, in Switzerland.

The deal remains tentative. The full text has not been publicly released, Iranian hardliners have expressed opposition, and Israel has indicated it will not be bound by terms involving Lebanon. Former U.S. officials cautioned Monday that the agreement buys time for “long and tedious” nuclear negotiations rather than resolving core disputes.

Oil Drops, Equities Jump

WTI crude fell to the $81 to $85 per barrel range, down 3% to 5% on de-escalation expectations, as the Strait of Hormuz accounts for a significant share of global oil and gas trade. Brent held in the $84 to $87 range.

Nasdaq-100 futures pointed to a gain of more than 2% at the open, with S&P 500 futures up approximately 1.3% and Dow Jones futures adding roughly 1%. The S&P 500 hit an all-time high of 7,620.90 earlier in June 2026 and has shown consistent recovery since February, volatility tied to the initial Middle East conflict.

SpaceX shares gained approximately 6% in pre-market trading on Monday, extending a strong debut after pricing at $135 on June 11 and closing its first Nasdaq session at roughly $161, a 19% gain that pushed its market cap above $2.1 trillion.

Gold Holds Elevated Ground

Gold traded at $4,347 bid and $4,349 ask as of 9 a.m., up 3.05% on the session and touching a daily high of $4,350.40. Silver gained 4.62% to $71.04 bid, while platinum added 4.72% and palladium climbed 5.21%.

Precious metals held elevated levels despite the risk-on shift, supported by ongoing central bank buying and persistent monetary uncertainty even as oil prices retreated.

FOMC Looms Wednesday

The Federal Open Market Committee (FOMC) meets June 16 to 17, with a rate decision expected on Wednesday. Markets are pricing in a hold at the current target range. The meeting will include a Summary of Economic Projections, an updated dot plot, and a press conference with the new Chair, Kevin Warsh, that will set the tone for policy guidance through the summer.

Sticky inflation, with recent CPI readings around 4.2% year-over-year in some estimates, remains the primary constraint on any dovish shift. The tone from new Fed Chair Kevin Warsh will be closely watched.

What Traders Are Watching

The next 48 to 72 hours carry significant weight. Markets will monitor:

Official signing details from Switzerland on June 19
Iran Supreme Leader and hardliner responses to the MoU
Israel’s military and diplomatic posture regarding Lebanon
Early Hormuz implementation steps and oil price follow-through
Wednesday’s FOMC statement and dot plot

Crypto remains tied to macro risk appetite. A hawkish Fed surprise on Wednesday could pressure the current rally, while confirmation of the Iran deal’s initial implementation steps would likely extend it.