Binance founder CZ receives support from crypto community as jail term starts

Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, has reported to a low-security federal prison in Lompoc, California, to begin serving his sentence.

According to a CNBC report, the information was verified with his legal team at Latham and Watkins.

Crypto community applauds

Members of the crypto community have expressed their admiration for the former CEO as he is taken into custody. A Reddit user mentioned that the prison sentence is a positive move by CZ, as it protects Binance from potential risks. User Ilsemprelaziale wrote:

“If FTX downfall hit Crypto hard, just imagine what would happen if Binance collapsed. He pleaded guilty and stepped down as CEO.”

The post-prison plans

Following his sentencing, Zhao outlined his post-prison plans, revealing his intention to resume his involvement in cryptocurrency once he completes his four-month sentence at Lompoc prison.

Specifically, he plans to maintain his existing cryptocurrency holdings and engage in passive investing, signaling his continued confidence and commitment to the digital asset market.

He emphasized that this period represents “a new stage for the crypto industry,” underscoring the importance of compliance with regulations and rules.

Zhao’s sentencing

In an April hearing in U.S. District Court for the Western District of Washington, Zhao, also known as “CZ,” was sentenced to four months in prison by Judge Richard Jones for charges related to money laundering at his cryptocurrency exchange.

He was also ordered to pay a $50 million fine. The former Binance chief’s sentence is significantly less than the three years federal prosecutors initially recommended.

Despite the sentencing guidelines calling for a prison term of 12 to 18 months, CZ’s lawyers requested he be given five months of probation.

Before being sentenced, CZ apologized for his actions and said he “had a lot of quiet time alone to think and reflect.” He added he accepted responsibility for Binance’s failure to implement an effective Anti-Money Laundering (AML) program.

Following Judge Jones’ decision, Zhao said he would present himself at a date to be determined to report to prison.

In November, CZ reached an agreement with the U.S. government to resolve a multiyear investigation into Binance. As part of the settlement, Zhao resigned as the company’s CEO.

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.

Source: https://cointelegraph.com/news/changpeng-zhao-binance-founder-begins-prison-sentence