Binance Founder CZ’s First Words After Receiving 4-Month Prison Sentence

Binance founder and former CEO – Changpeng Zhao also known as CZ – received a four-month prison sentence after pleading guilty to violating US anti-money laundering laws at the world's largest cryptocurrency exchange.

In his first tweet after the ruling, CZ revealed his intention to remain an investor and passive holder in the cryptocurrency industry while simultaneously highlighting the importance of compliance in the industry.

Czechoslovakia's reaction

In his finals tweet Before beginning his four-month prison sentence, CZ expressed his gratitude to his supporters, acknowledging the letters, messages and various forms of encouragement he had received.

He even continued to stress the importance of their support to keep him afloat during this period.

“I will bide my time, wrap up this phase, and focus on the next chapter of my life (education). I will remain a passive (and holder) investor in cryptocurrencies. Our industry has entered a new phase. Compliance is extremely important. The silver lining of this entire process is that Binance has been under Microscope and funds are SAFU!

CZ resigned as CEO of Binance last November after admitting that he and the exchange he founded in 2017 failed to comply with anti-money laundering regulations set out in the Bank Secrecy Act.

Judgment

CZ was seen as one of the most influential figures in the industry, becoming the second prominent cryptocurrency leader after FTX's Sam Bankman Fried (SBF) to face prison.

The sentence was far short of the three years sought by prosecutors and marked the first case in which a CEO was jailed for violating the Bank Secrecy Act, a charge frequently used in recent cryptocurrency prosecutions.

Before his sentencing, Czechoslovakia expressed remorse to US District Judge Richard Jones, acknowledging his failure to implement an effective anti-money laundering program. He mentioned,

I think the first step to taking responsibility is to fully acknowledge mistakes. Here you have failed to implement an adequate anti-money laundering program. “I now realize the seriousness of that mistake.”

CZ chose to voluntarily surrender to serve his sentence, which will likely be at a detention center near Seattle-Tacoma International Airport. Additionally, Binance agreed to a $4.32 billion fine, while CZ paid a $50 million criminal fine and an additional $50 million to the US Commodity Futures Trading Commission (CFTC).