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Binance Founder Changpeng Zhao Gets 4 Months In Prison

US prosecutors had initially recommended a three year jail term.

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binance founder changpeng zhao gets 4 months in prison

A federal judge in the United States has handed out a four month prison sentence to Binance founder Changpeng Zhao (known as “C.Z.”). Prosecutors had recommended a three year term after Zhao pleaded guilty to violating the Bank Secrecy Act back in November 2023.

The DOJ accused Zhao of turning a blind eye to criminal activity on the crypto exchange and ignoring its legal obligations “in the pursuit of profit”. U.S. Treasury Secretary Janet Yellen also noted that Zhao’s “willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform”.

The U.S. government accused Binance of refusing to comply with sanctions and failing to report transactions related to drugs and child sexual abuse. Prosecutors claimed that Zhao had told Binance employees it was “better to ask for forgiveness than permission” while saying that if Binance had obeyed the law, it wouldn’t be “as big as we are today”.

To avoid a longer jail term, Binance agreed to forfeit $2.5 billion and settle a $1.8 billion fine. Zhao also paid $50 million from his own fortune as part of the settlement.

Also Read: Top E-Commerce Websites In The Middle East In 2024

The Binance founder’s sentence is much shorter than the 25 years recently given to crypto entrepreneur Sam Bankman-Fried of FTX. Zhao played a prominent role in Bankman-Fried’s downfall after Tweeting in November 2022 that his company would liquidate all FTX holdings. The posts not only destroyed FTX but rocked the wider crypto community, likely attracting attention from the U.S. government.

With Zhao heading to prison, DOJ lawyer Kevin Mosley remarked: “This wasn’t a mistake — it wasn’t a regulatory oops […] breaking U.S. law was not incidental to his plan to make as much money as possible. Violating the law was integral to that endeavor”.

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Lebanon Ministers Meet Visa Over National Digital Payment Platform

Finance and technology ministers say a comparative study and roadmap will follow before any decision on adopting a model.

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lebanon ministers meet visa over national digital payment platform

Lebanon’s finance and technology ministers met representatives from Visa last week to discuss a proposed unified national digital payment platform for government services, according to a readout from the Ministry of Finance.

The meeting brought together Finance Minister Yassin Jaber, Minister of State for Technology and Artificial Intelligence Kamal Shehadeh, a Visa delegation, and experts from both ministries. Discussion focused on whether Lebanon could establish a single platform through which citizens and institutions would pay taxes, fees, fines and other official transactions electronically, using mobile phones and other digital channels.

The Visa delegation presented examples from countries that have adopted unified government payment platforms, including the United Arab Emirates, Singapore, Estonia and Jordan. According to the readout, the examples were presented as having increased collection rates and expanded financial inclusion.

Talks covered settlement mechanisms, direct transfer to the treasury account, financial reconciliation, risk management, cybersecurity, fees, and an operational model that would involve the private sector. The parties agreed to continue technical and institutional consultations, prepare a comparative study, and develop an implementation roadmap before any decision on adopting a model for Lebanon.

Jaber said the Ministry of Finance had already enabled citizens to pay using credit cards and e-wallets through transfer companies, but described the proposed platform as a further step. He framed the development of electronic payment and collection systems as a priority within the ministry’s modernization plan.

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Shehadeh outlined the citizen-facing concept as a single mobile application through which users could settle obligations to ministries, government institutions and other bodies.

“The idea, in short, is that any citizen downloads an application on their mobile phone, through which they can pay all service obligations for all ministries, government institutions, or those owned by the Lebanese state, and others as well, as the platform is not limited only to state institutions,” he said.

Shehadeh added that the platform would not displace banks and money transfer companies that currently provide collection services to the state, calling it complementary to their work.

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