Fri, July 12

Binance Founder Changpeng Zhao Begins Four-Month Prison Term

Binance Founder Changpeng Zhao Reportedly Owns 64% of BNB Tokens Exchange News
  • The information was confirmed with his legal staff at Latham & Watkins, as per a CNBC report.
  • Judge Richard Jones handed down a four-month jail term to Zhao, at a hearing in April.

Crypto exchange Binance’s founder Changpeng Zhao (CZ) has reported to a federal prison in Lompoc, California, to start serving his term. The information was confirmed with his legal staff at Latham & Watkins, according to a CNBC report.

After his sentencing, Zhao discussed his intentions after jail, indicating that he intends to go back into the crypto industry after serving his four-month term at Lompoc. He is showing his unwavering faith in the digital asset market by intending to passively invest and keep his current crypto holdings.

Following Regulations Crucial

He stressed that the crypto sector is entering “a new stage” and that following the norms and regulations is crucial. Judge Richard Jones handed down a four-month jail term to Zhao, at a hearing in April in the U.S. District Court for the Western District of Washington. The charges against Zhao stem from money laundering at his crypto exchange.

A fine of $50 million was also imposed on him. Federal prosecutors had originally proposed a three-year term for the former Binance boss, but the judge handed down a much smaller penalty. The sentence recommendations were for a 12-to 18-month jail term, but CZ’s attorneys asked for a five-month probation instead.

After admitting his guilt, CZ expressed regret and said that he “had a lot of quiet time alone to think and reflect” before his sentencing. Furthermore, he acknowledged that he was to blame for Binance’s ineffective Anti-Money Laundering (AML) policy. Earlier, in response to Judge Jones’ ruling, Zhao said that he will show up at a predetermined time to report to jail.

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