Ex-Binance CEO Changpeng “CZ” Zhao has surrendered to a California-based federal facility where he will serve his sentence for financial crimes that led the cryptocurrency exchange he founded to agree to pay a mammoth $4.3 billion fine.
Zhao pleaded guilty to violating anti-money laundering laws in November. With a $37 billion fortune, he has made history as the richest US inmate ever.
CZ’s Prison Sentence In California Prison Kicks Off
Changpeng Zhao has officially started his four-month prison sentence at the Federal Correctional Institution, Lompoc in Lompoc, California. It’s a low-security prison located northwest of Los Angeles.
The 47-year-old billionaire had pleaded guilty to federal money laundering charges last year, which focused on a corporate culture at Binance that U.S. prosecutors claimed dismissed fraud prevention in favor of the company’s growth. He was forced to step down from the world’s largest exchange he founded and cough up a $50 million personal fine.
The U.S. Department of Justice had recommended Zhao be sentenced to three years in prison for the egregious violation of the Bank Secrecy Act. But the crypto kingpin was given a tremendously light sentence of four months.
Since flying to Seattle to enter the guilty plea, CZ had been barred from leaving the United States as travel restrictions were imposed on him by Judge Richard Jones. Prosecutors warned that the former Binance chief, with an estimated wealth of $37.2 billion, was a flight risk.
It’s unclear how long Zhao will serve at the prison camp in California. Still, he will potentially receive credit for time already served, and the four-month sentence could include as little as 10 months in jail with the remaining time under supervised release.
Post-Jail Plans
Zhao’s prison time will likely be more of a blip in his story than the end of his line. After doing his time, CZ plans to focus on global online education for children — most likely through the Giggle Academy, which he revealed in March while awaiting his sentencing.
CZ also plans to maintain his existing crypto holdings and remain a passive investor, suggesting his continued confidence and commitment to the crypto industry. Earlier last month, he observed that Binance had been “under the microscope” yet customer funds remained SAFU, underscoring the importance of compliance with regulations.
Following Zhao’s resignation, Binance outlined an optimistic vision for the future. “We are confident that Binance will emerge as a stronger company as we lay the foundation for the next 50 years,” the exchange asserted.
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