Zhao intends to return to bitcoin after serving his four-month sentence at Lompoc prison. The creator of Binance, the biggest cryptocurrency exchange in the world, Changpeng Zhao, has reported to serve his term at a low-security federal prison in Lompoc, California. The information was confirmed with his legal staff at Latham & Watkins, according to a CNBC report.
During his incarceration, the former CEO has received praise from the cryptocurrency community. Given that it shields Binance from possible threats, a Reddit member stated that CZ’s prison sentence is a wise decision.
As stated by user Ilsemprelaziale: Imagine what may occur if Binance failed, given how severely FTX’s demise affected the cryptocurrency market. The CEO resigned after entering a guilty plea. Zhao gave a post-sentence statement after his sentencing, stating that he intends to continue his bitcoin activities after serving his four-month term at Lompoc prison.
His intention is to continue investing passively and holding cryptocurrencies, indicating his faith and dedication to the digital asset market. In highlighting the significance of adhering to laws and regulations, he said that this time marks “a new stage for the crypto industry.”
Regarding allegations of money laundering at his cryptocurrency exchange, Zhao, also known as “CZ,” was given a four-month prison sentence by Judge Richard Jones in an April hearing held in U.S. District Court for the Western District of Washington.
Moreover, a $50 million fine was mandated for him. Compared to the three years that federal prosecutors had originally recommended, the former Binance CEO’s punishment is substantially shorter.
CZ’s attorneys asked that he be placed on five months of probation instead of the 12 to 18 months of prison that the sentence guidelines called for. CZ expressed regret for his acts prior to receiving his sentence and claimed to have “had a lot of quiet time alone to think and reflect.” He went on to say that he took ownership of Binance’s inability to put in place a successful anti-money laundering (AML) programme.
Zhao announced that he will show up on a predetermined day to report to prison after Judge Jones’ ruling. CZ and the US government came to a resolution in November to wrap up a multiyear probe into Binance. Zhao gave up his position as CEO of the business as part of the settlement.
The U.S. also ordered the former CEO of Binance to pay $4.3 billion in fines and forfeiture for “civil regulatory enforcement actions.” Zhao agreed to pay a $50 million Fine.