Richard

Reddit

Changpeng Zhao, founder of <a href="https://www.binance.com/en" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Binance</a>, the world’s largest cryptocurrency exchange, has begun serving his sentence at a low-security federal prison in Lompoc, California.
CNBC confirmed the news through Zhao’s legal team at Latham and Watkins.
The crypto community has shown support for Zhao during this time. A Reddit user highlighted that Zhao’s prison sentence could safeguard Binance from potential risks.
User Ilsemprelaziale commented:
“If FTX downfall hit Crypto hard, just imagine what would happen if Binance collapsed. He pleaded guilty and stepped down as CEO.”
Zhao has revealed his plans following his four-month sentence.
He intends to resume his involvement in the cryptocurrency sector, maintaining his holdings and focusing on passive investing, demonstrating his unwavering confidence in digital assets.
He emphasized this period as “a new stage for the crypto industry,” highlighting the critical need for adherence to regulations and compliance.
In April, Zhao, also known as “CZ,” was sentenced by Judge Richard Jones in the U.S. District Court for the Western District of Washington.
READ MORE: <a href="https://www.cryptointelligence.co.uk/u-s-treasury-releases-first-ever-risk-assessment-on-nfts-highlighting-potential-illicit-uses-and-investor-risks/" data-wpel-link="internal" rel="noopener noreferrer nofollow">U.S. Treasury Releases First-Ever Risk Assessment on NFTs, Highlighting Potential Illicit Uses and Investor Risks</a>
The charges were related to money laundering at Binance, resulting in a four-month prison term and a $50 million fine.
This sentence is notably less severe than the three years federal prosecutors initially sought.
Despite sentencing guidelines recommending 12 to 18 months in prison, Zhao’s lawyers advocated for five months of probation.
Before his sentencing, Zhao apologized and reflected on his actions, accepting responsibility for Binance’s inadequate Anti-Money Laundering (AML) program.
Following Judge Jones’ decision, Zhao stated he would report to prison on a date to be determined.
In November, Zhao reached an agreement with the U.S. government to resolve a multiyear investigation into Binance.
As part of the settlement, he resigned as CEO of Binance.
The U.S. government also imposed a $4.3 billion fine for “civil regulatory enforcement actions,” of which Zhao agreed to pay $50 million.
To submit a <a href="https://www.cryptointelligence.co.uk/category/press-releases/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto press release (PR)</a>, send an email to <a href="mailto:sales@cryptointelligence.co.uk" rel="noopener noreferrer nofollow">sales@cryptointelligence.co.uk</a>.

Binance Founder Changpeng Zhao Begins Prison Sentence, Plans Return to Crypto Post-Release

Crypto Intelligence

Other articles published on Jun 2, 2024

BlockDAG Presale Surges by 850%, Outperforming Ethereum and BounceBit in Global Market Influence

Trump Vows to Pardon Silk Road Creator Ross Ulbricht if Re-Elected

BlockDAG’s Dashboard Hikes Presale to 10.5B Coins: Investors Turn Away from Ethereum Layer 2 Coin...

Video Guide: How to Collect Farming Rewards

MoonBag’s Top Crypto Presale in 2024: The Guiding Light Amidst ICP and AAVE Crypto Storms

ONDO Price Hits Record High

Join our free newsletter for daily crypto updates!