According to a CNBC report, Changpeng Zhao (CZ), the founder of crypto exchange Binance, has reported to a federal prison in Lompoc, California, to begin serving his four-month jail term. This information was confirmed by his legal team at Latham & Watkins.
Despite his sentence, Zhao has expressed his intention to return to the crypto industry after completing his term. He remains confident in the digital asset market and plans to passively invest in and retain his current crypto holdings.
Zhao emphasized the importance of adhering to regulations in the crypto sector, stating that it is entering a new stage. Judge Richard Jones of the U.S. District Court for the Western District of Washington sentenced Zhao to four months in jail in April. The charges against him were related to money laundering activities on his crypto exchange.
In addition to the jail term, Zhao was fined $50 million. Initially, federal prosecutors had proposed a three-year sentence, but the judge imposed a significantly lesser penalty. The recommended jail term was 12 to 18 months, but CZ’s lawyers requested a five-month probation instead.
Following his admission of guilt, Zhao expressed remorse and mentioned that he had spent a significant amount of time reflecting on his actions before the sentencing. He also took responsibility for Binance’s inadequate Anti-Money Laundering (AML) policy. Earlier, in response to Judge Jones’ ruling, Zhao stated that he would report to jail at the designated time.
In other news, the Uniswap Foundation has faced backlash and decided to postpone a vote on incentives.