Binance founder CZ begins 4-month prison sentence as Korea’s richest inmate

Binance founder Changpeng Zhao, also known as CZ, has reported to a low-security California facility to begin his four-month federal prison sentence as the richest inmate in the United States.

Zhao was sentenced to four months in prison and a personal fine of $50 million in April after pleading guilty in November 2023 to failing to implement adequate anti-money laundering protocols at Binance, the world’s largest cryptocurrency exchange. Binance agreed to pay $4.3 billion in one of the largest monetary settlements in history, sparking mixed reactions from the cryptocurrency community.

Sam Mangel, who works as a federal prison consultant, told The Block in April: “CZ will not likely benefit from the work-time credit program and he is expected to serve 120 days in federal prison.” “Even though he may be uncomfortable, I believe that Zhao will be safe and will not be robbed or put in danger.”

Government records show CZ reported to the Federal Correctional Institution in Lompoc, California, a low-security federal prison located northwest of Los Angeles. FCI Lompoc includes Reed Slatkin, who was convicted of running one of the largest Ponzi schemes in history that primarily targeted Scientologists, and Mossimo Gianulli, who allegedly played a role with his wife, Lori Loughlin, in the college admissions bribery scheme. Several notable prisoners convicted of white-collar crimes were taken into custody. scandal.

Following CZ’s departure, Binance released a blog post highlighting its success and outlining its vision for the future. “We are confident that Binance will emerge as an even stronger company, laying the foundation for the next 50 years,” he wrote.

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