On April 30, Judge Richard Jones sentenced Changpeng “CZ” Zhao, the former CEO of Binance, to four months in federal prison. Zhao pleaded guilty to one felony charge for failing to maintain an effective Anti-Money Laundering (AML) program at the cryptocurrency exchange. However, the exact date for Zhao to report to prison was not determined at the hearing.
Writing Plans and Social Media Activity
Ahead of his incarceration, CZ hinted on social media about his plans to write during his prison term. He remained active on X, where he shared his thoughts and future plans with his 8.9 million followers. Zhao also launched a youth-focused crypto and blockchain education program called Giggle Academy. In his posts, he suggested he would spend his time in prison reading and preparing for his writing project.
Reporting to Prison
Zhao is expected to report to either the Camp at the Federal Correctional Institution (FCI) Sheridan in Oregon or the Federal Detention Center (FDC) SeaTac in Washington. Both facilities house violent offenders, which has led the Federal Bureau of Prisons to carefully consider where Zhao will serve his sentence to minimize risks of theft, extortion, or physical harm due to his significant wealth and status.
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Wealth and Legal Proceedings
With an estimated net worth of $33 billion, CZ is one of the wealthiest individuals to face prison time. His lawyers argued that his wealth could make him a target in prison, contributing to the judge’s decision to allow him to remain free until notified of his reporting date. Zhao has been on a $175 million bond, permitting him to travel within specific areas of the United States.
Legal and Financial Settlements
In November 2023, Zhao agreed to pay a $50 million penalty as part of a settlement deal between Binance and U.S. authorities. Binance also agreed to pay $4.3 billion to resolve “civil regulatory enforcement actions,” although this settlement did not address a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
