Changpeng “CZ” Zhao, the former CEO of cryptocurrency exchange Binance, has revealed his plans to utilize his upcoming four-month incarceration by writing something. Judge Richard Jones sentenced Zhao to four months in prison after he pleaded guilty to a felony charge of failing to maintain an effective Anti-Money Laundering program at Binance. The exact date for Zhao’s reporting to either the Camp at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington is yet to be determined.
Despite his impending prison term, CZ has remained active on social media, where he hinted at his future plans. He recently launched Giggle Academy, an educational program focused on crypto and blockchain for the youth. Additionally, he reached out to his 8.9 million followers on X, seeking suggestions on how to pass the time during his incarceration.
In a recent statement, Zhao expressed that he has “nothing else to do” except read books and wait for his reporting date. He pled guilty to the felony charge in November 2023 but was allowed to remain free on a $175 million bond, with permission to travel within certain areas of the United States. He will continue to be free until the Probation or Pretrial Services Office notifies his legal team about the specifics of his reporting.
With an estimated net worth of $33 billion, CZ will become one of the wealthiest individuals to ever serve a prison sentence. Prior to the sentencing, Zhao’s lawyers submitted expert declarations highlighting the potential risks of theft and extortion due to his wealth and status.
These factors likely influenced Judge Jones’ decision to not immediately send Zhao to prison. The Federal Bureau of Prisons is currently evaluating which facility would pose the least risk of physical harm to Zhao during his four-month imprisonment. Both FDC SeaTac and FCI Sheridan house violent offenders.
The Probation or Pretrial Services Office of the Western District of Washington’s website explains that after sentencing, presentence reports are used by the Bureau of Prisons to determine the appropriate institutions for offenders, select prison programs, and develop case plans for custody and eventual release.
As part of a settlement between Binance and U.S. authorities in November, Zhao has already paid a $50 million penalty. Binance agreed to pay $4.3 billion to settle civil regulatory enforcement actions, but this did not resolve the lawsuit filed by the U.S. Securities and Exchange Commission.
According to Inner City Press and X Hall of Flame magazine, it is anticipated that Zhao will serve less jail time compared to Sam Bankman-Fried.