Changpeng Zhao, the founder of Binance, has commenced his four-month sentence in a federal prison. Despite this, he intends to remain involved in the cryptocurrency space and continue investing in digital assets in the future.

According to a recent report by CNBC, Changpeng Zhao, the founder of Binance, has begun serving his four-month sentence at a low-security federal prison located in Lompoc, California. His legal team from Latham & Watkins has confirmed his incarceration.

Commencement of Zhao's Prison Time

In April, Zhao was handed a four-month prison term after admitting to his involvement in money laundering activities on his cryptocurrency exchange.

Notably, the sentence imposed on the former Binance leader was lighter than the three-year term sought by federal prosecutors. While his defense team had requested five months of probation, sentencing guidelines had recommended a prison sentence ranging from 12 to 18 months. Prior to his sentencing, Zhao expressed remorse in front of the U.S. District Court, acknowledging his failure to implement a sufficient anti-money laundering program and recognizing the gravity of his mistake.

Post-Prison Aspirations

Following the sentencing, Changpeng Zhao outlined his plans for the period after completing his four-month stint in the Lompoc prison. He intends to maintain his involvement in the cryptocurrency sector, emphasizing his commitment to holding and passively investing in digital assets. Zhao views this phase as a pivotal moment for the crypto industry, stressing the importance of adhering to regulatory standards and guidelines.

In a parallel development, Sam Bankman-Fried, the founder and former CEO of FTX, is currently serving time in a U.S. federal prison. In November, he was convicted on all seven criminal charges brought against him. Subsequently, in March, he was handed a 25-year prison sentence for his role in a securities fraud scheme that led to the collapse of his cryptocurrency exchange.