Reported by The Block, Binance founder Changpeng Zhao, a.k.a CZ, has reported to a low-security California facility in order to begin his four-month federal prison term as the country's richest inmate.
Zhao was given a four-month sentence and a $50 million personal fine in April following his guilty plea in November 2023 to failing to implement proper anti-money laundering protocols at Binance, the world's biggest crypto exchange. Binance itself agreed to pay $4.3 billion in one of the largest monetary settlements in history, sparking mixed reactions from the crypto community.
"It appears CZ will not benefit from any earned time credit programs, and he is expected to serve the full 120 days in federal prison," Sam Mangel, who works as a federal prison consultant, "Though he’ll be uncomfortable, I believe Zhao will be safe and will not be extorted or be in danger."
CZ has reported to Federal Correctional Institution, Lompoc in Lompoc, California, according to government records, a low-security federal prison located northwest of Los Angeles. FCI Lompoc has held several notable inmates convicted of white-collar crimes including Reed Slatkin, convicted of running one of the largest Ponzi schemes in history largely targeting Scientologists, and Mossimo Gianulli, known for his role alongside his wife Lori Loughlin in a college admissions bribery scandal.
Following CZ's departure, Binance released a blog post highlighting its successes and outlining a vision for the future. "We are confident that Binance will emerge as a stronger company as we lay the foundation for the next 50 years,” it wrote.