[NEWS] Former Binance CEO Changpeng “CZ” Zhao incarcerated in California prison

CZ's prison sentence begins

CZ (Changpeng Zhao), founder and former CEO of major cryptocurrency exchange Binance, has been incarcerated at the Lompoc Federal Prison in Santa Barbara County, California, and has begun his four-month sentence.

CZ was convicted of violating anti-money laundering laws and enabling transactions between U.S. residents and residents of economically sanctioned countries. CZ resigned as CEO of Binance in November last year as part of a plea bargain, and has personally paid a large fine.

In April this year, the prosecution sought a 36-month prison sentence and a $50 million fine, but considering that he had already paid the fine, as well as having agreed to plea bargains and questioning, the sentence was reduced to four months.

Lompoc Federal Prison, where CZ will be incarcerated, is known for its more lenient conditions than typical federal prisons. It is said to be a prison with a relatively low level of security and a high degree of freedom, with a low possibility of escape. Some inmates are allowed to work outdoors, such as on horse farms.

After his release, CZ will not be able to be involved in the operation or management of Binance for three years. Binance itself will also be supervised by a sanctions compliance program monitor for five years as part of the plea agreement.

CZ himself has stated that he has no intention of being involved with Binance in the future, and has stated that he will be involved in education and launching a new Web 3.0 project. In fact, in March of this year, he announced the creation of an educational project called "Giggle Academy."

In contrast to the former CEO of FTX

The imprisonment of a representative figure in the cryptocurrency industry is that of Sam Bankman-Fried, former CEO of the cryptocurrency exchange FTX, which collapsed in November 2022.

Bankman-Fried was indicted on multiple charges, including bank fraud, and could have faced up to 110 years in prison. However, he was sentenced to 25 years in prison in March of this year.

Bankman-Fried is currently being held in New York, a city known for its high security and dangerous nature. He consistently maintained his innocence throughout the trial and showed no intention of admitting guilt.

Compared to CZ, Bankman-Fried's treatment has been in stark contrast.

Reference: CNBC

Image: Shutterstock

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