Binance founder CZ receives support from the crypto community as his jail term begins
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 CNBC, the information was verified by Latham & Watkins' legal team.
The crypto community applauds
Members of the crypto community expressed their admiration for the former CEO when he was arrested. A Reddit user mentioned that the jail sentence is a positive move by CZ because it protects Binance from potential threats. User Ilsemprelaziale wrote:
“If the fall of FTX is hard on crypto, imagine what would happen if Binance went down. He pleaded guilty and resigned as CEO.”
The plan after prison
Following his sentencing, Zhao outlined his post-prison plans and expressed his desire to continue his involvement in cryptocurrency once he completes his four-month sentence at the Lompoc Prison.
Specifically, it plans to maintain its current cryptocurrency holdings and invest indirectly, demonstrating its continued faith and commitment to the digital asset market.
He emphasized that this period represents “a new phase for the crypto industry”, emphasizing the importance of compliance with rules and regulations.
Judgment of Zhao
In an April trial in the US District Court for the Western District of Washington, Judge Richard Jones, also known as Zhao “CZ”, sentenced him to four months in prison for money laundering at the cryptocurrency exchange.
He was also ordered to pay a fine of 50 million dollars. The former Binance boss' sentence is significantly less than the three years federal prosecutors initially proposed.
While the sentencing guidelines call for 12 to 18 months in prison, CZ's lawyers asked for five months.
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Before sentencing, CZ apologized for his actions and said he had “a lot of quiet time to think and reflect.” It added that it accepts responsibility for Binance's failure to implement an effective anti-money laundering (AML) program.
Following Judge Jones' ruling, Zhao said he would turn himself in on a scheduled date to appear in jail.
In November, CZ reached a settlement with the US government to settle a multi-year investigation into Binance. As part of the settlement, Zhao stepped down as the company's CEO.
The US also ordered Binance's former CEO to pay $4.3 billion in fines and “civil enforcement actions.” Zhao agreed to pay a $50 million fine.
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