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Binance Crypto Boss Changpeng Zhao Sentenced to 4 Months in Prison
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 US District Judge Richard Jones in Seattle, who rejected prosecutors’ request that the 47-year-old Zhao serve a three-year term, twice the maximum recommended under federal guidelines.
Once considered the most powerful person in the crypto industry, Zhao, known as “CZ,” is be the second major crypto boss to be sentenced to prison.
In March, Sam Bankman-Fried received 25 years behind bars for stealing $8 billion from customers of his now-bankrupt FTX exchange.
Bankman-Fried is appealing his conviction and sentence.
Before handing down the sentence, Jones faulted Zhao for putting growth and profits before complying with US laws.
“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 said.
Wearing a navy blue suit and tie, Zhao did not react to sentencing.
Prosecutors said Binance employed a “Wild West” model that welcomed criminals, and did not report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and Islamic State.
They also said Zhao’s exchange supported the sale of child sexual abuse materials and received a large portion of ransomware proceeds. Binance agreed to a $4.32 billion penalty.
“I’m sorry,” Zhao told the judge before the sentencing.
“I believe the first step of taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program … I realize now the seriousness of that mistake.”
Prosecutors had told the judge a tough sentence would send a clear signal to other would-be criminals.
Binance logo 3
Prosecutors said Binance employed a “Wild West” model that welcomed criminals, and did not report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and Islamic State. REUTERS
“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.’”
Zhao stepped down as Binance’s chief in November, when he and the exchange he founded in 2017 admitted to evading money-laundering requirements under the Bank Secrecy Act.
Lawyers for Zhao requested probation, citing his acceptance of responsibility and paying a $50 million criminal fine.
They also said others who admitted to similar wrongdoing, including BitMEX founder Arthur Hayes, stayed out of prison.
Defense lawyer Mark Bartlett said Zhao “wanted to make a difference in the world,” but made mistakes.
Jones said a three-year sentence was inappropriate because prosecutors did not show that Zhao knew in advance about illegal activity.
“It’s always the case the government asks for more than they think they’ll get,” said Robert Frenchman, a lawyer specializing in white-collar crime. “Going that much above guidelines for a pleader is unusually aggressive.”
Several other crypto moguls are also in the crosshairs of US authorities after the collapse of crypto prices in 2022 exposed fraud and misconduct across the industry.
Zhao had been free on a $175 million bond, and agreed not to appeal any sentence within federal guidelines. Zhao also paid $50 million to the Commodity Futures Trading Commission.
MTN Nigeria recently celebrated the graduation of the third cohort of its Media Innovation Programme (MIP), awarding a total of NGN 2.5 million in cash prizes to three outstanding fellows. The graduation ceremony took place at the Pan-Atlantic University in Ibeju-Lekki, highlighting MTN’s commitment to fostering innovation in the media sector.
Launched in partnership with the School of Media and Communication at Pan-Atlantic University, the MIP is designed to equip media professionals with essential skills in traditional journalism while emphasizing the importance of technology in storytelling. Over six-months, fellows engaged in a comprehensive curriculum that included topics such as media entrepreneurship, ICT in media, and ethical journalism.
During the graduation ceremony, three fellows were recognized for their exceptional contributions including the MTN Nigeria Chairman Award for Innovation awarded to Augustus Aigbe of Cool FM; the MTN Foundation Chairman Award for Innovative Reportage to Moninkanola Ogidan of Adaba 88.9FM, Akure and the MTN Award for Best Reporting awarded to Chiemelie Ezeobi from ThisDay Newspapers.
The Executive Director of MTN Foundation, Odunayo Sanya, emphasized the importance of the media innovation and adaptability in media, stating that these awards represent an investment in the future leaders of journalism. “At MTN, we believe a lot in excellence, which is why the partnership with Pan-Atlantic University is still ongoing. We recognise that the future of media lies in innovation and adaptability.
“These awards do not just celebrate the Fellows’ achievement; we are investing in the next generation of media leaders. In an era where digital platforms redefine how stories are told, media practitioners must be equipped with the skills and resources to thrive.”
Dr. Ikechukwu Obiaya, Dean of the School of Media and Communication, highlighted the significance of investing in future media professionals to drive positive societal change while maintaining ethical standards. “In recent times, technological innovation, social media, Artificial Intelligence and the likes have been viewed as dangerous, due to their misuse, although they are not in themselves bad.
“And this is one thing that drives our programs for media practitioners. Our vision is to train and equip competent and professional persons who will use these technological advancements and platforms as a means to contribute to the good of the society.”
The ceremony ended with the Class President, Nifemi Oguntoye expressing his gratitude towards MTN and Pan-Atlantic University for providing a transformative experience that fostered cultural diplomacy between Nigeria and South Africa. “We’ve had the privilege of learning from some of the best minds in the industry. The lessons learnt during our study trip, discussions and engagements have been invaluable. We are eternally grateful to Pan-Atlantic University and MTN for the commitment to empowering Nigerian journalists. A number of our colleagues look forward to having this experience in the next cohort and we know they will not be disappointed”, he said.
To date, MTN Nigeria has invested over NGN 300 million in the media. MIP not only aims to enhance the skills of individual practitioners but also seeks to contribute to a more robust media landscape capable of navigating the complexities of a digital economy projected to reach $18.3 billion by 2026. The event reflects MTN’s ongoing dedication to bridging the digital divide and enhancing media capabilities within Nigeria’s rapidly evolving landscape.
MTN Group and MTN Nigeria have expressed delight at participating in the 11th South Africa-Nigeria Bi-National Commission held in Cape Town on Tuesday, during which the strong bonds between the two countries were reinforced and plans were made to accelerate cooperation.
MTN Group CEO/President, Ralph Mupita and MTN Nigeria Chairman, Dr. Ernest Ndukwe with President Tinubu
The MTN delegation – led by Group President & CEO, Ralph Mupita, MTN Nigeria Chairman, Dr. Ernest Ndukwe and MTN Nigeria CEO, Karl Olutokun Toriola – was honoured to engage with President Bola Ahmed Tinubu on the sidelines of the meeting, which was hosted by South Africa’s Minister of Trade, Industry and Competition Hon Parks Tau.
MTN Nigeria is an important MTN subsidiary, accounting for some 27% of all MTN subscribers and some 23% of Group service revenue.
MTN has long established itself as a company that is a proud supporter of the Nigerian economy, remaining committed to contributing to the nation’s progress across several fronts.
“We believe in the Bi-National Commission’s objectives and the pivotal role of the digital economy in driving inclusive growth in Nigeria. We look forward to continuing our support for economic development initiatives,” says a MTN LinkedIn post.
Digital Realty Nigeria’s CEO, Engr. Ikechukwu Nnamani, has received a prestigious Presidential recognition from the Nigeria Internet Registration Association (NiRA) at the 7th .ng Awards.
Engr. Ikechukwu Nnamani
This accolade recognizes his significant contributions to the growth and evolution of Nigeria’s digital ecosystem over the past three decades.
“Nnamani was honored for his innovative spirit and leadership in shaping the future of the digital landscape,” said NiRA President, Adesola Akinsanya, while commending him and other awardees for their exceptional work in driving digital transformation in Nigeria.
A visibly humbled Nnamani dedicated the award to his dedicated team at Digital Realty Nigeria, acknowledging their pivotal role in the company’s success. He expressed gratitude to NiRA and the broader industry for recognizing his contributions.
This latest recognition adds to Nnamani’s impressive list of accolades, including the Lifetime Achievement Award at Africa’s Beacon of ICT Merit and Leadership Awards and the prestigious Titans of Tech Hall of Fame.
The 7th .ng Awards, a biennial event, celebrated the achievements of individuals and organizations that have made significant strides in Nigeria’s digital landscape.
The two-day event featured insightful discussions on emerging technologies, digital trends, and the role of the .ng domain in shaping Nigeria’s digital future.
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