Bittime - Changpeng Zhao, the former CEO of Binance also known as CZ, has begun serving his federal prison sentence in California. This was confirmed by CZ's legal team from Latham & Watkins.
CZ: 4 Months in Federal Prison
CZ is currently being held in a low-security federal prison in Lompoc, California. This sentence was imposed after CZ pleaded guilty to charges of facilitating money laundering at Binance.
Last April, CZ was sentenced to four months in prison. The verdict was much lighter than federal prosecutors' request for a sentence of three years in prison.
Based on sentencing guidelines, CZ could actually be sentenced to 12 to 18 months in prison. However, CZ's legal team asked for a trial period of five months. Before receiving the verdict, CZ also apologized to US District Judge Richard Jones.
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CZ Resigns as CEO of Binance
Last November, CZ reached an agreement with the US government to resolve a years-long investigation into Binance. As part of the deal, CZ stepped down as CEO of the company. Although he no longer runs the company directly, CZ is estimated to still own around 90% of Binance shares.
Alleged Violations Committed by CZ
CZ is alleged to have committed several violations, including:
- Deliberately not implementing an effective anti-money laundering program in accordance with the provisions of the Bank Secrecy Act.
- Allowing Binance to process transactions involving the proceeds of illegal activities, including transactions between US citizens and individuals in sanctioned territories.
As a result of this violation, the US government ordered Binance to pay fines and compensation amounting to USD 4.3 billion. Apart from that, CZ was also fined USD 50 million.
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CZ dan Sam Bankman-Fried
In contrast to CZ, the founder and former CEO of FTX, Sam Bankman-Fried (SBF), was given a harsher sentence. SBF was sentenced to 25 years in prison in March for the securities fraud that led to the collapse of FTX and its related hedge fund, Alameda Research. Apart from that, SBf is also required to pay compensation of USD 11 billion.
The CZ and SBF cases are in the spotlight and demonstrate the importance of implementing strict anti-money laundering programs and compliance with financial regulations. It is hoped that business players in the crypto industry can learn from CZ and SBF's mistakes to create a more transparent and trustworthy ecosystem.
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To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
Changpeng Zhao Leaks His Latest Project: Education
Sentencing Trial of Changpeng Zhao, Binance Founder, Postponed!
US Judge Approves Binance and Changpeng Zhao's Deal Worth $4.3 Billion
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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