Changpeng “CZ” Zhao, the founder of Binance, tweeted just seven hours after being released from prison. He shared: #czprison
🟢“Good morning, the food tastes so good… And what a luxury to have more than one piece of fruit per day!”🟢
Despite his time in jail, CZ seems in good spirits, expressing gratitude for the support he received and a positive outlook moving forward. He hinted at taking his time to respond to questions, saying, “Let me chill for a bit,” but provided some updates on his future plans.
CZ emphasized his focus on investing in blockchain, decentralized technologies, AI, and biotech, calling himself a long-term investor who prioritizes impact over profits. He also mentioned charity and education, specifically through his Giggle Academy, and gave an update on his upcoming book, which is about two-thirds complete. #BinanceSquareFamily
“Giggle Academy has been doing well and will be a big part of my life for the next few years,” he added. Although he no longer runs Binance, CZ expressed satisfaction that the exchange is performing well without him.
CZ’s Legal Troubles and Sentence:
CZ’s prison sentence followed his guilty plea in April to charges related to money laundering at Binance. This stemmed from a multi-year U.S. Department of Justice (DoJ) investigation that found Binance facilitated illegal transactions, including those linked to terrorism and child exploitation. #BTC☀
The court revealed that Binance processed over 100,000 suspicious transactions without proper reporting, with prosecutors accusing CZ of prioritizing the company’s growth over compliance with U.S. law. His failure to implement adequate anti-money laundering (AML) controls allowed criminals to use the platform, jeopardizing U.S. financial security.
CZ was sentenced to four months in a low-security prison in Lompoc, California, after admitting to enabling money laundering. Although prosecutors initially sought a three-year sentence, his defense team reduced it to four months. They requested probation, but the court declined. In addition to prison time, CZ was fined $50 million personally.
Binance, as a company, was fined $4.3 billion for its violations. CZ also paid an additional $50 million to settle with the Commodity Futures Trading Commission (CFTC).
His sentencing came shortly after the collapse of FTX and the 25-year prison term of its founder, Sam Bankman-Fried, for fraud. Regulatory pressure from the SEC and CFTC has since intensified on crypto platforms, demanding stricter compliance. #CPI_BTC_Watch
Following his guilty plea, CZ resigned as CEO of Binance in November 2023, though he retains 90% ownership in the company. Despite stepping down, CZ's plea deal prevents him from having any direct involvement in the exchange’s operations. External monitors have been appointed to ensure Binance complies with U.S. regulations.