Changpeng Zhao, the founder of Binance, has started serving his four-month prison sentence at a low-security federal facility in Lompoc, California. His legal team from Latham & Watkins has confirmed his incarceration. Zhao, often referred to as “CZ,” was sentenced in April after admitting to facilitating money laundering on his cryptocurrency exchange.
Sentencing Details
The sentence of four months was lighter than the three years sought by federal prosecutors. The defense had requested a five-month probation, while sentencing guidelines suggested a term ranging from 12 to 18 months. Addressing the U.S. District Court before his sentencing, Zhao expressed remorse. He said, “I’m sorry. I believe the first step in 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.”
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Plans for the Future
Following his sentence, Zhao outlined his plans for after his release. He intends to continue holding and passively investing in cryptocurrencies. He also emphasized the importance of compliance with regulations, marking a new phase for the crypto industry.
Settlement and Resignation
In November 2023, Zhao settled a multiyear investigation by the U.S. government into Binance, leading to his resignation as CEO. Despite stepping down, he reportedly still owns around 90% of Binance.
Zhao’s case highlights the growing regulatory scrutiny of the cryptocurrency industry. As he serves his sentence, his future activities and Binance’s direction will be closely watched by industry observers and regulators alike.
