Binance Founder Changpeng Zhao Begins Four-Month Sentence In Low-Security California Prison

Binance
founder
Changpeng
Zhao
has
reported
to
a
low-security
federal
prison
in
Southern
California,
where
he
will
serve
a
four-month
sentence.

JUST
IN:
Former
Binance
CEO
Changpeng
Zhao
sentenced
to
4
months
in
prison.

pic.twitter.com/i1gdlcTWzs

—
Bitcoin
Magazine
(@BitcoinMagazine)

April
30,
2024

The
former
Binance
CEO
is
now
the
richest
person
to
go
to
prison
in
the
US.
In
April,
Forbes

ranked
Zhao
as
the
wealthiest
person
in
crypto
with
a
$33
billion
fortune.

Binance
Founder
CZ
to
Serve
Time
At
A
Low-Security
Prison

Zhao
reported
to
the
Lompac
II
prison
in
Southern
California,
where
he
will
serve
time
as
inmate
88087-510.
The
prison
has
2,160
inmates.

Zhao
is
not
the
only
influential
name
to
serve
time
at
the
prison.
It
also
housed
Reed
Slatkin,
who
was
accused
of
spearheading
one
of
the
biggest
Ponzi
schemes.

Low-security
prisons
tend
to
have
better
conditions
than
high-security
prisons.
At
Lompac
II,
the
inmates
can
work
at
a
nearby
farm
to
cater
to
animals
and
grow
produce.

The
conditions
at
the
Lompoc
II
facility
are
in
stark
contrast
to
the
New
York
prison
where
FTX
co-founder
Sam
Bankman-Fried
is
serving
his
25-year
sentence.

Zhao
pled
guilty
to
failing
to
implement
an
anti-money
laundering
system
at
Binance.
He
was
ordered
to
pay
a
$50
million
fine,
and
serve
a
four-month
prison
sentence.

The
prosecutors
initially
asked
for
a
36-month
prison
sentence,
while
Zhao’s
attorneys
sought
five
months
of
probation.

CZ
Turning
Over
A
New
Leaf

Shortly
before
his
sentencing,
Zhao

sent
a
letter
to
Judge
Richard
Jones
apologizing
for
failing
to
implement
adequate
compliance
measures
at
Binance.

In
the
letter,
Zhao
noted
that
he
did
not
want
the
charges
against
Binance
to
be
left
unresolved
and
rather
to
settle
them
before
the
court
and
start
over.

“I
wanted
to
right
my
wrongs,
turn
the
page,
and
start
the
next
chapter
of
my
life,”
Zhao
said.

While
it
remains
unclear
whether
Zhao
will
resume
his
roles
at
Binance
and
the
crypto
industry,
he
has
shown
interest
in
focusing
on
education
programs
and
blockchain
adoption.

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