The founder of the world's largest cryptocurrency exchange, Binance, is going to jail. After the trial held in April, which we also told you about on SpazioCrypto's virtual pages, found him guilty of money laundering, the doors of Changpeng Zhao's Lompoc Californian prison, a low-security facility, are now open for Changpeng Zhao. CZ will now begin serving his four-month sentence.
Cryto Community Openly Sides with Changpeng Zhao
At the announcement of his entry into the prison, the former CEO of Binance received praise and encouragement from numerous active members of the global crypto-community. According to a Reddit user who spoke out immediately after the report by CNBC confirming the incarceration, Changpeng Zhao made the right choice by accepting the indictment:
"He will be fine. I respect him for sacrificing himself for the team rather than putting Binance at risk. The collapse of FTX hurt the crypto sector badly, imagine what would happen if Binance collapsed now. Instead, Zhao pleaded guilty and resigned as CEO."
This is but one of the numerous messages of support that CZ received over the past weekend, when news was made public, and then confirmed by his legal team, that Changpeng Zhao would duly begin his jail term.
CZ's Plans for the Future
The many messages Zhao has received can also be explained by the fact that the former CEO has made it clear from the outset that he will return to cryptocurrency business as soon as he settles his debt with the courts. CZ will probably be able to shape up during these four months of imprisonment, since the Lompoc prison grants a good degree of freedom to its inmates, who are considered neither dangerous nor capable of escaping.
Changpeng Zhao he is no longer CEO of Binance but has retained all his current holdings in cryptocurrencies and has made it clear that he will devote himself to passive investing. Indeed, he is still very confident in the growth of digital assets and believes we are in a new phase for cryptocurrencies and their industry, which could open up interesting investment opportunities.
Let's summarise the Changpeng Zhao Sentence
Judge Richard Jones found Zhao guilty of enabling money laundering within his platform. He did not accuse the former CEO of participating in the operations or playing an active role in the illicit activity but acknowledged that the company was aware of what was going on. CZ then chose to make mea culpa and save the company from a blow that could have been far more painful.
Federal prosecutors had asked for 3 years for Changpeng Zhao, as per the guidelines for sentences of this type which, in the US, usually result in a prison term of between 12 and 18 months. The four-month sentence is significantly less than the one requested, although it is to be served in prison, and not under house arrest as per the defence's request.
When he was sentenced, Changpeng Zhao willingly accepted, if one can call it that, and apologised. He also said, with an oriental savoir-faire, that behind bars he will have a lot of time alone in which he can reflect and think for a long time, so as to come to his senses and prevent such an incident from happening again.
The sentence reduction was achieved following an agreement from last November. During a meeting with US government representatives, Zhao agreed to step down as CEO and pay a hefty $50 million fine. By contrast, Binance was ordered to pay a $4.3 billion fine.
