According to the latestĀ reportĀ from CNBC, Changpeng Zhao, the founder of Binance, has begun serving his four-month prison term at a low-security federal facility in Lompoc, California and his legal team from Latham & Watkins has confirmed his incarceration.
Zhao was sentenced toĀ four months in prisonĀ in April after admitting to facilitating money laundering on his crypto exchange. Notably, this sentence was lighter than the three years sought by federal prosecutors.Ā
CZās defense had asked for five months of probation, while sentencing guidelines recommended a term of 12 to 18 months.Ā
Addressing the U.S. District Court before his sentencing, āIām sorry. I believe the first step of taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program. ā¦ I realize now the seriousness of that mistake.ā
Following his sentence, Zhao revealed his plans after his release, stating his intention to continue holding and passively investing in cryptocurrencies. He emphasized the importance of compliance with regulations in this new stage for the crypto industry.Ā
In November 2023, Zhao, also known as āCZ,ā settled a multiyear investigation by the U.S. government into Binance, resulting in his resignation as CEO. Despite stepping down, he reportedly still owns around 90% of Binance.
