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Ex-Binance Chief Jailed For Four Months In US

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The founder of cryptocurrency firm Binance was sentenced to four months in US prison on Tuesday after pleading guilty to money laundering charges, in the most high-profile crypto case since Sam Bankman-Fried was jailed.

Changpeng Zhao, a Canadian, resigned from his post at the world’s largest cryptocurrency exchange platform late last year as part of a deal with US authorities.

According to investigations by two Treasury agencies, Binance failed to prevent transactions by movements such as the Islamic State group, al-Qaeda or the armed wing of Hamas.

Zhao pleaded guilty to violating US anti-money laundering laws and Binance agreed in February to pay $4.3 billion to settle charges.

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Prosecutors had asked the judge to impose three years behind bars for a crime that typically results in probation, according to a court filing.

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

“The sentence in this case will not just send a message to Zhao but also to the world.”

Attorneys for Zhao countered in a filing that being punished with probation is just, appropriate, and in line with legal precedent.

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They cited Zhao’s acceptance of responsibility along with what they called his philanthropic track record.

“I made mistakes, and I must take responsibility,” Zhao, who lives in the United Arab Emirates, said in a post on X, formerly Twitter, in November.

He has been in the United States since that time.

Binance was created in 2017 and cornered much of the crypto-trading market, turning its founder and chief executive Zhao into a billionaire.

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While Binance was founded in China, Zhao moved its operations to other locations internationally after a crackdown on the crypto sector by Beijing.

Binance runs crypto exchanges and provides other services around the world, but it took a severe hit when crypto markets collapsed and regulators began probing the legality of its business.

The volatile industry surged in 2021, with a range of complex products and celebrity endorsements propelling it to a valuation in excess of $3 trillion in 2022.

But a series of scandals, including the November 2022 collapse of Binance’s main rival exchange, FTX, and criminal charges for several industry executives, saw public confidence evaporate and investors pull their money out of crypto.

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FTX founder Bankman-Fried was given a 25-year jail term in March.

The crypto industry has bounced back in recent months, thanks in large part to US regulators giving the go-ahead for exchange-traded funds (ETFs) in bitcoin which allow investors to trade the asset without actually opening a crypto account.

Binance’s new CEO Richard Teng told AFP this month that the company spent hundreds of millions of dollars on compliance and was working very closely with regulators.

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Iran accuses US of violating ceasefire over past 48 hours

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Iran’s foreign ministry on Tuesday accused the United States of violating a fragile ceasefire during the past 48 hours in the southern coastal province of Hormozgan, without specifying the incident.

“The US terrorist army, continuing its illegal and unjustified actions since the ceasefire … has, in the past 48 hours, committed a gross violation of the ceasefire in the Hormozgan region,” the ministry said in a statement.

The US Central Command said forces had on Monday attacked missile sites and boats it said were trying to lay mines in the Gulf, while Iran’s Revolutionary Guards said it had fired at US aircraft attempting to enter the country’s airspace.

AFP

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Iran president orders internet restored after war suspension

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Iranian President Masoud Pezeshkian has ordered the restoration of international internet access in Iran, which had been suspended since the United States and Israel launched attacks against the country, local media reported Monday.

“The decree aimed at restoring internet access to its pre-January state was communicated to the Ministry of Communications by the president,” Iranian news agencies Tasnim and Fars reported.

Authorities shut down the internet during large-scale anti-government protests that peaked in early January, then suspended it again on February 28 at the start of the Middle East war.

Since then, the population has only had access to domestic platforms and websites.

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Trump says Iran deal ‘largely negotiated’ including reopening Strait of Hormuz

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US President Donald Trump says an agreement with Iran has been “largely negotiated” and details will be announced soon.

The deal would include the reopening of the Strait of Hormuz, he said on Saturday, without giving further details.

Iranian foreign ministry spokesman Esmaeil Baqaei earlier told state television that US and Iranian positions had been converging in the last week, but warned that did not mean agreements would be reached on key issues and accused the Americans of “contradictory statements”.

On social media, Trump said he had a “very good call” with the leaders of Saudi Arabia, the United Arab Emirates, Qatar, and others about a “Memorandum of Understanding pertaining to PEACE”.

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“An agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed,” Trump said.

“Final aspects and details of the deal are currently being discussed, and will be announced shortly.”

He also said he had a call on Saturday with Israeli Prime Minister Benjamin Netanyahu, which “went very well”.

The president has not given any further details on the deal, but has insisted any agreement would “absolutely” prevent Iran from obtaining a nuclear weapon.

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Later, Pakistan’s Prime Minister Shehbaz Sharif said: “I congratulate President Donald Trump on his extraordinary efforts to pursue peace,” and said the phone call had been “very useful and productive”.

Pakistan has been helping to negotiate a peace deal, serving as an intermediary.

“We hope to host the next round of talks very soon,” he wrote in the statement on X.

The US and Israel launched wide-ranging strikes on Iran on 28 February, sparking conflict across the Middle East. Iran responded by launching attacks on Israel and US-allied states in the Gulf.

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A ceasefire in Iran was agreed in early April, and since then Washington and Tehran have engaged in talks over a long-term peace deal.

Speaking to state television on Saturday, Iranian foreign ministry spokesman Esmaeil Baqaei also described a “memorandum of understanding”, saying Iran’s intention was to reach an agreement “in the form of a framework, consisting of 14 points”.

Baqaei said they were in the process of finalising the memorandum, so further talks could be held within 30 to 60 days “and ultimately a final agreement can be reached”.

The new sense of momentum comes after the mood appeared to have soured in Washington, with anonymous officials briefing US media on Friday that the administration was preparing for a fresh round of military strikes, although no final decision had been made.

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On Friday, the president posted on Truth Social that he would not attend his son Donald Jr’s wedding this weekend so he could remain in Washington DC “during this important period of time”.

Last week, Trump had said the truce was on “massive life support” after rejecting Tehran’s demands, labelling them “totally unacceptable”.

The US has blockaded Iranian ports since 13 April.

On Saturday, US Central Command (Centcom) said it had redirected 100 vessels, disabled four, and allowed 26 humanitarian aid ships to pass since the blockade began.

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Centcom commander Admiral Brad Cooper said its forces had been “highly effective” in “allowing zero trade into and out of Iranian ports which has squeezed Iran economically”.

Meanwhile, Iran has claimed military control of an area around the Strait of Hormuz, and has said all transit through the strait “requires coordination with and authorisation from the Persian Gulf Strait Authority”.

The US and Gulf allies have repeatedly rejected Iranian attempts to assert control over the strait, and the US has told ships not to comply with Iran’s rules.

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