Binance’s CZ Starts 4-Month Sentence in Lompoc, California

As a crypto investor with several years of experience in this volatile market, I’ve followed the developments surrounding Changpeng Zhao, or CZ, the founder of Binance, with great interest. His recent prison sentence for facilitating money laundering on his exchange is a sobering reminder of the regulatory challenges that the crypto industry continues to face.


Based on the most recent update from CNBC, Changpeng Zhao, the creator of Binance, has commenced a four-month sentence at a federal prison with a reduced security level in Lompoc, California. His legal team from Latham & Watkins has verified his imprisonment.

In April, I noted that Zhao received a prison sentence of four months long for his role in enabling money laundering on his crypto exchange. However, this penalty was less severe than the three-year term demanded by federal prosecutors.

The legal team representing Czech Republic’s defense suggested a lenient sentence of five months’ probation, in contrast to the suggested term of 12 to 18 months according to sentencing guidelines.

Before the esteemed U.S. District Court as I stand here for sentencing, I express my deepest regrets. The first crucial step towards accountability is acknowledging errors in full. In my case, I fell short by neglecting to establish a robust anti-money laundering program – a grave omission that I now recognize.

After being released, Zhao shared his intentions of persisting in holding and making passive investments in cryptocurrencies. He underscored the significance of adhering to regulatory guidelines during this pivotal phase for the crypto market.

In November 2023, I came to the end of a lengthy probe by U.S. authorities regarding Binance. Consequent upon this resolution, I relinquished my position as CEO. However, allegedly, I retain approximately 90% ownership of the company.

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2024-06-01 11:32