Changpeng Zhao (CZ), the founder of the world’s largest cryptocurrency exchange, Binance, has begun serving his prison sentence at a federal facility in Lompoc, California, according to CNBC. The low-security prison will be his home for the next four months. CZ’s legal team at Latham and Watkins confirmed the news of his custody in federal prison.
In a significant turn of events, Judge Richard Jones ruled in favor of reducing CZ’s sentence during the sentencing hearing. The United States Department of Justice (DOJ) initially sought a harsh 36-month prison term, but the judge opted for a more lenient recommendation from the Probation Office, which suggested a four-month incarceration period.
CZ admitted guilt to a single count of violating the Bank Secrecy Law, which led to his resignation as an advisor to Binance.US. The cryptocurrency community rallied behind him, with many friends and family members writing letters of support, highlighting his integrity and contributions to the industry.
Following his sentencing, CZ shared his thoughts on his next steps and expressed gratitude to his supporters. In a recent post on his official X platform account, he stated that he would serve his sentence and focus on the next chapter of his life. He also emphasized that the cryptocurrency industry has entered a new phase.
“I want to thank everyone for their love and support, whether through letters, showing support at X, or in any other way. It means a lot to me and keeps me strong. I will serve my time, complete this phase, and focus on the next chapter of my life, which involves education. I will continue to be a passive investor and holder of crypto. Our industry is going through a transformative phase, and compliance is of utmost importance. The positive aspect of this entire process is that Binance is under scrutiny, and users’ funds are safe. Protect users!” CZ wrote.
Disclaimer: The views expressed in this article are solely those of the author and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.