The former CEO of Binance, Changpeng “CZ” Zhao, has expressed his intention to engage in writing during his upcoming four-month imprisonment. Judge Richard Jones sentenced Zhao to four months in prison after he pleaded guilty to one felony charge related to the lack of an effective Anti-Money Laundering program at Binance. The exact date of Zhao’s reporting to either the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington has not yet been determined.
Despite his impending incarceration, Zhao has remained active on social media. He recently launched Giggle Academy, an educational program focused on cryptocurrencies and blockchain for young people. Additionally, he reached out to his 8.9 million followers, seeking suggestions on how to spend his time while in prison.
Zhao previously mentioned that he planned to read books and wait for his reporting date, as he believed he had “nothing else to do.” He pleaded guilty to the felony charge in November 2023 and was allowed to remain free on a $175 million bond, with the ability to travel within certain areas of the United States. He will continue to enjoy his freedom until the Probation or Pretrial Services Office informs his legal team about the specifics of his reporting requirements.
With an estimated net worth of $33 billion, Zhao is set to become one of the wealthiest individuals ever to serve a prison sentence. Prior to the sentencing, Zhao’s lawyers submitted expert declarations suggesting that his wealth and status could make him a target for theft and extortion.
These factors may have influenced Judge Jones’ decision not to immediately send Zhao to prison. The Federal Bureau of Prisons is likely considering which facility would pose the least risk of physical harm to Zhao, as both FDC SeaTac and FCI Sheridan house violent offenders.
According to the Probation or Pretrial Services Office of the Western District of Washington, “presentence reports are utilized by the Bureau of Prisons to designate the institutions appropriate for offenders to serve their sentences, to select prison programs to help the offenders, and to develop case plans for their custody and eventual release.”
In November, Zhao already paid a $50 million penalty as part of a settlement between Binance and U.S. authorities. Binance agreed to pay $4.3 billion to resolve civil regulatory enforcement actions, although the lawsuit filed by the U.S. Securities and Exchange Commission remains unresolved.
In comparison to Zhao, Sam Bankman-Fried, another prominent figure in the cryptocurrency industry, received a much longer sentence of 25 years.