Richard

Reddit

April

&nbsp;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 <a href="https://www.cnbc.com/2024/05/31/binances-ex-ceo-changpeng-zhao-begins-prison-sentence-in-southern-california.html" target="_blank" rel="noopener nofollow">verified</a> with his legal team at Latham and Watkins. 
<h2 id="crypto-community-applauds">Crypto community applauds</h2>
Members of the crypto community have expressed their admiration for the former CEO as he is taken into custody. A Reddit user <a href="https://www.reddit.com/r/CryptoCurrency/comments/1d5gq8c/comment/l6lj1ym/?utm_source=share&amp;utm_medium=web3x&amp;utm_name=web3xcss&amp;utm_term=1&amp;utm_content=share_button" target="_blank" rel="noopener nofollow">mentioned</a> that the prison sentence is a positive move by CZ, as it protects Binance from potential risks. User I<a href="https://www.reddit.com/user/ilsemprelaziale/" target="_blank" rel="noopener nofollow">lsemprelaziale</a>&nbsp;wrote:
<blockquote data-ct-non-breakable="true">
 “If FTX downfall hit Crypto hard, just imagine what would happen if Binance collapsed. He pleaded guilty and stepped down as CEO.”
</blockquote>
<h2 id="the-post-prison-plans">The post-prison plans</h2>
Following his sentencing, Zhao <a href="https://www.binance.com/en-IN/square/post/7231582634562" target="_blank" rel="noopener nofollow">outlined</a> his post-prison plans, revealing his intention to resume his involvement in cryptocurrency once he completes his four-month sentence at Lompoc prison. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/cced3e13-ec7f-4d2d-85f4-09de08232f2e.png">
 <figcaption style="text-align: center;">
 Source:<a href="https://x.com/Eljaboom/status/1796803972864352411" target="_blank" rel="noopener nofollow"> Elija Boom</a>
 </figcaption>
</figure>
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.
<h2 id="zhao-s-sentencing">Zhao’s sentencing</h2>
In an April hearing in U.S. District Court for the Western District of Washington, Zhao, also known as “CZ,” was <a href="https://cointelegraph.com/news/changpeng-zhao-binance-sentenced-prison">sentenced to four months in prison</a> 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 <a href="https://cointelegraph.com/news/binance-cz-jail-36-months-us-prosecutors">prosecutors initially recommended</a>. 
Despite the sentencing guidelines calling for a prison term of 12 to 18 months, CZ’s lawyers <a href="https://cointelegraph.com/news/changpeng-zhao-prison-facility-seattle">requested he be given</a> five months of probation.
Related: <a href="https://cointelegraph.com/news/bitcoin-etfs-traditional-finance-investments">Bitcoin ETFs boost TradFi Investments: Binance France president</a> 
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 <a href="https://cointelegraph.com/tags/aml">Anti-Money Laundering (AML)</a> program. 
Following Judge Jones’ decision, Zhao said he would present himself at a date to be determined to report to prison.
In November, CZ <a href="https://cointelegraph.com/news/breaking-binance-changpeng-zhao-pleads-guilty-violating-anti-money-laundering-requirements-wsj">reached an agreement </a>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.
Magazine: <a href="https://cointelegraph.com/magazine/deposit-risk-crypto-exchanges-money/">Deposit risk: What do crypto exchanges really do with your money?</a>

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

Table of Contents

Cointelegraph

Other articles published on Jun 1, 2024

No es necesario comprar equipos, únase a la minería en la nube en línea de KKminer y gane fácilme...

Crucial SHIB Rewards Warning Issued to Shiba Inu Community

Robinhood Approaches Settlement with Investors Over 2021 Meme Stock Trading Halt

6 Best Cheap Crypto to Buy Now Under 1 Cent June 1 – Minu, BitTorrent, Shiba Inu

Bitcoin just had its best May since 2019 despite 'predatory' 3% BTC price dip

AI Crypto Revolution: Top 4 Altcoins Set to Transform Your Investment Portfolio

Join our free newsletter for daily crypto updates!