Changpeng “CZ” Zhao, the man behind Binance, broke his silence just seven hours after being released from prison. He tweeted:
“Good morning, the food is delicious… And what a luxury to be able to eat more than one fruit a day!”
For a guy fresh out of prison, CZ says he's doing just fine. He's relaxed, grateful for the support he's received, and ready to move forward.
He hinted that he wouldn't answer every question right away, saying, "Let me cool down a little bit." He then continued to update on what was coming up next on Twitter.
CZ talked about his plans, such as continuing to invest in blockchain, decentralized technology, AI, and biotechnology. He calls himself a long-term investor who cares more about impact than profit.
He also mentioned charity and education (through his Giggle Academy) as future priorities, along with progress on his book, which is now about two-thirds complete.
“Giggle Academy has been great and will play a big part in my life for the next few years.”
Despite no longer being in charge of Binance, CZ is happy to see the exchange doing well without him.
Trieu's verdict and confession
CZ’s prison sentence comes after he pleaded guilty in April to money laundering-related charges at Binance.
It all started with a years-long investigation by the US Department of Justice (DoJ), which found that Binance had enabled transactions related to illegal activities, such as terrorism and child exploitation.
The court found that the exchange processed more than 100,000 suspicious transactions without properly reporting them.
Prosecutors claim CZ put the company’s growth ahead of compliance with U.S. law. His failure to implement proper anti-money laundering (AML) controls allowed Binance to become a hub for crime.
He also clearly poses a danger to the US financial system and national security.
After pleading guilty to aiding and abetting money laundering, CZ was later sentenced to four months in prison at a low-security prison in Lompoc, California.
Prosecutors initially recommended a three-year prison sentence, but CZ's defense team managed to get the sentence reduced to four months.
They argued for probation, but the court disagreed. Along with the prison time, CZ was also ordered to pay a personal criminal fine of $50 million.
Binance was fined $4.3 billion for the company’s violations. In addition to the $50 million criminal fine, CZ was also ordered to pay an additional $50 million to settle with the Commodity Futures Trading Commission (CFTC).
CZ's sentencing comes shortly after the collapse of FTX and the 25-year prison sentence given to founder Sam Bankman-Fried for fraud.
The SEC and CFTC have increased pressure on cryptocurrency platforms, demanding compliance with financial regulations.
After pleading guilty, CZ stepped down as CEO of Binance in November 2023. But he still holds 90% of the company.
That ownership gives him a large stake, even if he is no longer involved in day-to-day operations. A condition of his plea agreement bars him from having any active role in Binance’s operations.
To keep an eye on things, external monitors have been deployed to ensure Binance complies with US laws in the future.
