According to a recent report by CNBC, Changpeng Zhao, the founder of Binance, has begun his four-month prison sentence at a low-security federal prison in Lompoc, California. Zhao's legal team at Latham & Watkins confirmed that he is now in custody.

Zhao's Sentence Commences

In April, Zhao was sentenced to four months in prison after admitting that he allowed money laundering to happen at his cryptocurrency exchange, Binance. Although federal prosecutors had pushed for a three-year sentence, Zhao received a lighter punishment. His defense team had requested five months of probation, and sentencing guidelines suggested a prison term between 12 to 18 months. Before his sentencing, Zhao addressed the U.S. District Court, expressing remorse:

"I'm sorry. I believe taking responsibility starts with recognizing mistakes. I failed to implement a proper anti-money laundering program. I now understand how serious that mistake was."

In November 2023, Zhao, often called "CZ," settled with the U.S. government, ending a lengthy investigation into Binance. This settlement included his resignation as CEO, though he still holds an estimated 90% ownership in the company.

Future Plans After Prison

After receiving his sentence, Zhao discussed his plans for after his prison term. He intends to continue holding and passively investing in cryptocurrencies. He highlighted this period as "a new stage for the crypto industry," emphasizing the need to comply with regulations and laws.

Meanwhile, Sam Bankman-Fried, the founder of FTX, is also in a federal prison in the United States. He was found guilty in November on seven criminal charges and received a 25-year sentence in March for his role in a securities fraud conspiracy that led to FTX's collapse.

In summary, Changpeng Zhao's four-month prison term marks a significant moment for the cryptocurrency world. Upon his release, Zhao plans to stay involved in the industry, focusing on compliance and regulation.