Changpeng Zhao, founder of Binance, a leading cryptocurrency exchange platform globally, has started serving his sentence at a low-security federal prison in Lompoc, California. His legal team validated this information, as reported by CNBC.
The crypto community expressed their support for Zhao, also known as CZ, as he began his jail term. One Reddit user named Ilsemprelaziale declared that CZ’s jail time would ultimately safeguard Binance from potential dangers. They added, “If FTX downfall hit Crypto hard, just imagine what would happen if Binance collapsed. He pleaded guilty and stepped down as CEO.”
Following the sentencing, CZ unveiled his plans for his post-prison life. He indicated that once his four-month sentence ends, he intends to re-engage with the cryptocurrency world. He also plans to hold onto his current cryptocurrency investments and participate in passive investing, demonstrating his ongoing assurance and dedication to the digital asset market. He conveyed that this period signifies “a new stage for the crypto industry,” emphasizing the significance of abiding by regulations and rules.
During an April hearing in the U.S. District Court for the Western District of Washington, Judge Richard Jones sentenced CZ to four months in prison for charges linked to money laundering occurring at his cryptocurrency exchange. CZ was also slapped with a $50 million fine, although the federal prosecutors initially recommended three years in jail. Encouragingly, he showed remorse and accepted responsibility for Binance’s failure to create a potent Anti-Money Laundering (AML) program before being sentenced.