Key Takeaways:
- Changpeng “CZ” Zhao, Binance founder, is serving a four-month sentence for inadequate KYC procedures.
- Zhao also faced a $50 million fine, stepped down as Binance CEO, and Binance settled related charges with $4.3 billion in fines.
- Zhao’s net worth of $36.5 billion makes him the richest person ever imprisoned in the U.S.
Changpeng “CZ” Zhao, founder of Binance, has begun serving a four-month sentence at Lompoc II, a low-security federal prison in California, for failing to implement adequate know-your-customer (KYC) procedures at Binance.
Zhao, a Canadian national, pleaded guilty to violating the Bank Secrecy Act in November and received a shorter sentence than the three years sought by prosecutors but longer than other crypto executives for similar crimes.
#Binance founder Changpeng Zhao (CZ) begins prison sentence in California. pic.twitter.com/4hLNqXz0NO
— Watcher.Guru (@WatcherGuru) June 3, 2024
In addition to his prison term, Zhao was fined $50 million and stepped down as Binance’s CEO.
Binance also settled related charges with $4.3 billion in fines and appointed an independent compliance monitor.
Lompoc II, housing 2,160 inmates, features farm work programs and contrasts with the more dangerous facility holding former FTX CEO Sam Bankman-Fried, who is serving a 25-year sentence.
Former Binance CEO CZ has reported to a California federal prison to begin a four-month sentence for failing to safeguard the crypto exchange against money laundering https://t.co/5zSSJPW528
— Bloomberg Crypto (@crypto) June 3, 2024
Zhao’s net worth is estimated at $36.5 billion, making him the richest person ever to be imprisoned in the U.S.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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