Binance Founder CZ, Changpeng Zhao, has started his four-month prison term at a low-security federal facility in Lompoc, California. This comes after he was sentenced on April 30 by the U.S. District Court for the Western District of Washington for violating U.S. money laundering laws.

Zhao's legal team, Latham and Watkins, confirmed the information. Despite his legal team requesting probation due to concerns about his safety, the court decided against it. The team had highlighted his wealth and public figure status as factors that could put him at risk of threats to his physical and mental health if incarcerated.

The crypto community has shown significant support for Zhao, particularly for his decision to step down as Binance CEO following the incident. A member of the community on Reddit praised his actions, stating that he took one for the team by not putting Binance at risk. If Binance were to collapse, the impact would be catastrophic, similar to the FTX downfall.

Zhao will be out of prison by the end of September or early October. After his release, he plans to keep his existing cryptocurrency holdings and engage in passive investing. This move demonstrates his unwavering confidence and commitment to the digital asset market.

Meanwhile, Binance has undergone significant organizational changes with the formation of a new board of directors. The board is led by Gabriel Abed, former ambassador of Barbados to the UAE. The new board consists of seven members, including company executives and independent members.