Changpeng “CZ” Zhao, the man behind Binance, broke his silence just seven hours after getting out of prison. He tweeted:
“Good morning, the food taste so good… And what a luxury to be able to have more than one piece of fruit per day!”
For a guy just out of jail, CZ says he is doing fine. He is relaxed, grateful for the support he received, and ready to move forward.
He hinted that he wouldn’t answer all questions immediately, saying, “Let me chill for a bit.” His tweet went on to give updates about what’s next for him.
CZ talked about his plans, like continuing to invest in blockchain, decentralized technologies, AI, and biotech. He called himself a long-term investor who cares more about impact than returns.
He also mentioned charity and education (via his Giggle Academy) as future priorities, plus the progress of his book, which is about two-thirds done.
“Giggle Academy has been going well, and will be a big part of my life for the next few years.”
While he’s no longer in charge of Binance, CZ was happy to see that the exchange was doing well without him.
Zhao’s sentence and guilty plea
CZ’s prison sentence came after he pleaded guilty in April to charges linked to money laundering at Binance.
This all started with a multi-year investigation by the U.S. Department of Justice (DoJ), which found that Binance had allowed transactions tied to illegal activities, like terrorism and child exploitation.
The court found that the exchange processed more than 100,000 suspicious transactions without proper reporting.
Prosecutors claimed CZ put the company’s growth over following American law. His failure to put proper anti-money laundering (AML) controls in place caused Binance to become a hub for criminals.
He apparently also endangered the U.S. financial system and national security.
When he admitted to enabling money laundering, CZ was then sentenced to four months in a low-security prison in Lompoc, California.
The prosecutors originally pushed for a three-year sentence, but CZ’s defense team managed to get the sentence down to four months.
They argued for probation, but the court didn’t agree. Along with the jail time, CZ was hit with a $50 million personal criminal fine.
Binance was slapped with $4.3 billion as a company for its violations. In addition to his $50 million criminal fine, CZ had to give another $50 million to settle with the Commodity Futures Trading Commission (CFTC).
CZ’s sentencing came not long after the collapse of FTX and the 25-year prison sentence of its founder, Sam Bankman-Fried, for fraud.
The SEC and CFTC have increased pressure on crypto platforms, demanding compliance with financial regulations.
After pleading guilty, CZ stepped down as CEO of Binance in November 2023. But he still holds 90% of the company.
That ownership gives him a massive stake, even if he’s no longer involved in day-to-day operations. One condition of his plea deal prevents him from having any active role in Binance’s operations.
To keep an eye on things, external monitors have been put in place to make sure Binance is following U.S. laws going forward.
