The previous CEO of Binance, a popular cryptocurrency exchange, Changpeng “CZ” Zhao, has expressed his intention to “write something” during his upcoming four-month imprisonment. Judge Richard Jones sentenced Zhao to four months in prison on April 30. He pleaded guilty to a felony charge of not maintaining an effective Anti-Money Laundering program at the exchange. Zhao is expected to report to either the Camp at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington, but the exact date is yet to be determined.
Despite his impending incarceration, CZ has remained active on social media. He recently launched Giggle Academy, an educational program focused on crypto and blockchain for young people. Additionally, he reached out to his 8.9 million followers on X, seeking suggestions on how to make the most of his time in prison.
According to Zhao, he has “nothing else to do” but read books and wait until his reporting date. He pleaded guilty to the felony charge in November 2023 and has been allowed to remain free on a $175 million bond until the Probation or Pretrial Services Office notifies his legal team of the reporting details.
As one of the wealthiest individuals, with an estimated net worth of $33 billion, CZ’s imprisonment is notable. Prior to sentencing, Zhao’s lawyers submitted declarations from experts highlighting the potential risks of theft and extortion due to his wealth and status. These factors may have influenced Judge Jones’ decision not to immediately incarcerate him. The Federal Bureau of Prisons is likely considering the facility that poses the least physical harm risk to Zhao, as both FDC SeaTac and FCI Sheridan accommodate violent offenders.
The Probation or Pretrial Services Office of the Western District of Washington’s website explains that after sentencing, presentence reports are used by the Bureau of Prisons to determine the appropriate institutions for offenders, select prison programs, and develop case plans for their custody and eventual release.
In November, Zhao already paid a $50 million fine as part of a settlement between Binance and U.S. authorities. Binance agreed to pay $4.3 billion to resolve civil regulatory enforcement actions, but it did not resolve the lawsuit filed by the U.S. Securities and Exchange Commission.
According to Inner City Press, an “less flashy” individual, likely referring to Alex Mashinsky, is set to receive a shorter jail sentence than Sam Bankman-Fried.