The Fall of CZ: Binance Founder Begins Prison Sentence

• Binance founder CZ has reported to a federal prison in California to begin a four-month sentence.
• CZ’s sentencing is part of a plea deal with U.S. authorities regarding AML charges.
• Founder of FTX Sam Bankman-Fried is serving a 25-year sentence for fraud.

Changpeng Zhao (CZ), the billionaire founder of Binance, has begun a four-month prison sentence at a low-security federal facility in Lompoc, California. Latham & Watkins, Zhao’s defense team, confirmed the former crypto executive is now in custody.

In April, Zhao was sentenced after pleading guilty to charges related to enabling money laundering through his cryptocurrency exchange, Binance.

The sentence is less than the three years federal prosecutors initially sought. Zhao’s defense had requested five months of probation, while sentencing guidelines suggested 12 to 18 months in prison.

Before U.S. District Judge Richard Jones handed down the sentence, Zhao expressed remorse. “I’m sorry,” he stated, acknowledging his failure to implement adequate anti-money laundering measures at Binance. “I believe the first step of taking responsibility is fully recognizing the mistakes,” Zhao added.

In Novembe…

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