Binance founder CZ Begins Four-Month Sentence in Lompoc, California

As per the latest CNBC report, Binance founder Changpeng Zhao has reportedly started his four-month sentencing at a low-security federal prison in Lompoc, California. Zhao’s defense team at Latham & Watkins has confirmed that the former Binance chief is in custody.

Zhao’s Time In Federal Prison Begins

In April, Zhao received a four-month prison sentence after admitting to facilitating money laundering at his cryptocurrency exchange.

The former Binance chief’s sentence was notably lighter than the three years federal prosecutors had sought. The defense had requested five months of probation, while sentencing guidelines recommended a prison term of 12 to 18 months. Before receiving his sentence, Zhao told the U.S. District Court:

“I’m sorry. I believe the first step in taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program. … I realize now the seriousness of that mistake.”

In November 2023, Zhao, widely known as “CZ,” reached a settlement with the U.S. government to conclude a multiyear investigation into Binance, the world’s largest cryptocurrency exchange. As part of the agreement, Zhao resigned as the company’s CEO. Despite no longer being at the helm, Zhao reportedly retains an estimated 90% ownership stake in Binance.

The Post-Prison Plans

After Changpeng Zhao received the prison sentence, he also shared his plans once he completes his four-month tenure in the Lompoc prison. CZ also mentioned that following his prison term, he plans to continue holding and passively investing in cryptocurrencies. He emphasized that this period represents “a new stage for the crypto industry,” underscoring the importance of compliance with regulations and rules.

Sam Bankman-Fried, the founder and former CEO of FTX, is currently incarcerated in a federal prison in the United States. In November, he was found guilty on all seven criminal counts against him. In March, he received a 25-year prison sentence for his involvement in a securities fraud conspiracy, which led to the downfall of his cryptocurrency exchange.

Source link



Leave a Reply

Your email address will not be published. Required fields are marked *

On Key

Related Posts