Crypto X Behind Binance Founder CZ as Jail Term Begins

A low-security federal prison in Lompoc, California will be the “living quarters” of Changpeng ‘CZ’ Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, for the next four months. Zhao will commence his 4 month jail term at the federal facility.

Legal Proceedings and Sentencing

As per a CNBC report, Zhao’s legal team at Latham and Watkins certified the information. On April 30, the U.S. District Court for the Western District of Washington presided over by Judge Richard Jones, sentenced Zhao to four months in prison for violating U.S. money laundering laws. Zhao’s arrival signals the commencement of the sentence count.

Community Support and Reactions

Notably, members of the crypto community have shown massive support for Zhao and his actions, particularly for stepping down as Binance CEO following the incident. A member of the crypto community on Reddit highlighted that as a positive move by CZ which helped to shield Binance from risks.

According to the user Ilsemprelaziale, “I respect him for taking one for the team rather than putting Binance at risk. If FTX downfall hit crypto hard just imagine what would happen if Binance collapsed.”

Although Zhao’s legal team had in April requested probation for the Binance founder, expressing concerns about Zhao’s safety, it was not approved. The legal 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.

Binance Founder Post Prison Plans

However, with the commencement of his jail term at the federal prison in Lompoc, California, Zhao will be out by the end of September or early October. As per plans after the completion of his sentencing, CZ maintains he will keep his existing cryptocurrency holdings and engage in passive investing.

Analysts say this lends credence to Zhao’s unwavering confidence and commitment to the digital asset market.

Meanwhile, Binance has undergone a significant organizational change with the formation of a new board of directors. The board is led by Gabriel Abed, former ambassador of Barbados to the United Arab Emirates (UAE). The new board of seven persons is a mix of company executives and independent members.