Binance founder Changpeng Zhao begins four-month sentence in low-security California prison

adminJune 4, 2024

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Binance founder Changpeng Zhao will report to a low-security federal prison in Southern California to begin serving a four-month sentence.

Latest: Former Binance CEO Changpeng Zhao sentenced to 4 months in prison. pic.twitter.com/i1gdlcTWzs
— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

The former Binance CEO is now the richest person behind bars in the United States. Last April, Forbes named Zhao the richest person in the cryptocurrency industry with a fortune of $33 billion.

Binance founder CZ to serve time in low-security prison

Zhao reported to Lompac II Prison in Southern California, where he will serve his sentence as inmate 88087-510. There are 2,160 inmates in this prison.

Zhao is not the only influential figure to have served time in prison. Also housed there was Reed Slatkin, accused of masterminding one of the largest Ponzi schemes.

Low-security prisons tend to have better conditions than high-security prisons. At Lompac II, inmates can work on a nearby farm, raising animals and growing produce.

Conditions at the Lompoc II facility stand in stark contrast to the New York prison where FTX co-founder Sam Bankman-Fried is serving a 25-year sentence.

Zhao pleaded guilty to failing to implement an anti-money laundering system at Binance. He was sentenced to a $50 million fine and four months in prison.

The prosecution initially requested 36 months in prison, and Attorney Zhao requested 5 months of probation.

CZ is turning over a new leaf

Shortly before sentencing, Zhao wrote a letter to Judge Richard Jones, apologizing for failing to implement appropriate compliance measures at Binance.

In the letter, Zhao noted that he does not want the charges against Binance to be left unresolved and would rather have them resolved in court and start over.

“I wanted to right my wrongs, turn the page, and start the next chapter of my life,” Zhao said.

It is unclear whether Zhao will resume his role with Binance and the cryptocurrency industry, but he has expressed interest in focusing on educational programs and blockchain adoption.