A U.S. judge has handed down a four-month prison sentence to former Binance CEO Changpeng “CZ” Zhao for violating U.S. money laundering laws. This comes after prosecutors urged a three-year term due to his failure to uphold an effective Anti-Money Laundering program during his tenure at the cryptocurrency exchange, to which he admitted guilt. Despite prosecutors' push for an 18-month to three-year sentence, Judge Richard Jones contended there was no proof that Zhao had been made aware of specific illicit activities at Binance.

Despite a seemingly lenient sentence and substantial fines, U.S. authorities have spent six years investigating Zhao and his crypto empire. The sentence's primary aim appears to be general deterrence, according to Aaron Lane, a senior law lecturer at Melbourne’s RMIT Blockchain Innovation Hub. Lane noted the U.S. justification for charging Zhao, emphasizing the regulatory nature of the allegations. However, questions have arisen regarding the disparate treatment of industry leaders like Zhao compared to others, such as FTX co-founder Sam Bankman-Fried, who received a 25-year prison term for fraud.

In other developments, Oregon has become the sixth state to take action against Binance.US, either revoking, suspending, or refusing to renew its operating license. Meanwhile, a Nigerian court postponed the trial involving Binance executives Tigran Gambaryan and Nadeem Anjarwalla on money laundering charges. The trial delay, until May 17, was attributed to the legal team's need to review documents. The case is separate from tax evasion charges brought against them by Nigeria’s Economic and Financial Crimes Commission, to which they have pleaded not guilty.

Elsewhere, BTC-e co-founder Alexander Vinnik pleaded guilty to money laundering conspiracy following a probe uncovering extensive illicit activities on the exchange from 2011 to 2017. The U.S. Department of Justice highlighted BTC-e's processing of over $9 billion in transactions, involving criminal proceeds from activities like hacking, ransomware attacks, and drug trafficking. Additionally, early Bitcoin investor Roger Ver faces charges of mail fraud, tax evasion, and filing false tax returns, with Spanish authorities arresting him based on U.S. criminal charges. Ver is accused of defrauding the IRS of about $48 million by not reporting capital gains from the sale of Bitcoin and other assets.