Changpeng Zhao, the founder of the world's largest crypto exchange, Binance, has officially begun his prison term at a low-security federal facility in Lompoc, California.
Zhao, known as CZ, was sentenced by Judge Richard Jones in the US District Court for the Western District of Washington in April. He received a four-month prison term for charges related to money laundering at Binance, along with a $50 million fine.
Before his sentencing, Zhao expressed regret, stating he had reflected on his actions and accepted full responsibility for Binance's failure to implement an effective Anti-Money Laundering (AML) program.
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The investigation into Binance concluded in November when CZ reached a settlement with the US government. As part of this agreement, he pled guilty to a felony charge, stepped down as the company's CEO and was ordered to pay $4.3 billion in fines and forfeitures for civil regulatory violations, with Zhao agreeing to pay a $50 million fine.
After completing his four-month sentence, Zhao plans to fund biotech research to cure diseases and use blockchain technology to provide global medical care. He also remains committed to supporting youth education and welfare programs worldwide. CZ added:
Please accept my promise that this will be my only experience with the criminal justice system and that I will spend the rest of my life in a way that makes everyone proud.
During this time, CZ received support from the crypto community. One Reddit user expressed respect for CZ for serving his sentence to protect Binance, noting that his actions prevented a potential collapse far worse than FTX's downfall.
Zhao's decision to take responsibility and serve his sentence has been viewed as a step towards greater accountability and transparency.
In other news, another legal issue involving Binance is still unfolding in Nigeria. Tigran Gambaryan, one of the company's executives currently detained in the country and facing charges of tax evasion and money laundering, is reportedly suffering from malaria.
