Binance founder completes prison sentence, vows more blockchain investments
4 min readCrypto billionaire Changpeng Zhao (CZ), founder and former CEO of Binance, is out after serving four months in prison in the United States. And he wasted no time in regaining his freedom: he announced that he will increase his investments in the blockchain sector.
Additionally, over the weekend, Zhao announced on X (formerly Twitter) his plans to invest in artificial intelligence and biotechnology. After all, as a long-term investor, he stressed that he prioritizes making an impact over obtaining financial returns.
gm, the food taste so good… And what a luxury to be able to have more than one piece of fruit per day!
I know some of you may have a lot of questions. I won't have all the answers.
Let me chill for a bit. Then figure out the next steps. There are always more opportunities in… https://t.co/9hvgp8Bo97
— CZ 🔶 BNB (@cz_binance) September 29, 2024
CZ wants to focus on Giggle Academy and charity
Zhao also said that his educational initiative, Giggle Academy, will take up much of his time in the coming years. The project aims to provide free basic education from grades 1 to 12.
The project operates without a revenue model. However, it incorporates concepts of gamification, adaptive learning, and blockchain. It also uses Soul-Bound Tokens (SBT) to certify student achievements.
In CZ’s words:
“I will devote more time and resources to charity (and education). I have some preliminary ideas.”
Furthermore, he revealed that he is writing a book, having already completed two thirds of it. The information that he had a book project came from CZ himself, in a publication in X at the time of his arrest.
Waiting for the CZ book, the book for crypto upcoming leaders.
— OMO 🔶 (@Crypto_omo) May 11, 2024
The possibility of him writing a book has piqued the curiosity of many in the cryptocurrency community. After all, he was and still is an important leader in the industry, due to his role in one of the world’s leading cryptocurrency exchanges.
The project was reportedly slower than initially anticipated. However, CZ was committed to completing the book and releasing it soon.
While the book is still being published, you can find different biographies of CZ by other authors on Amazon. The focus, for the most part, is on the creation of Binance and the legal problems the entrepreneur has been facing in the US.
CZ Settles Amid Binance Lawsuit
CZ was arrested on April 30, 2024. He then served a 4-month prison sentence after an agreement with the US justice system. He was accused of failing to implement a robust anti-money laundering system at Binance. Therefore, he would be violating the US Bank Secrecy Act.
In November 2023, the company’s then-CEO reached a plea agreement in which he signed his guilty plea. He admitted to having allowed transactions linked to criminal activities and to countries sanctioned by the US, such as Iran and Cuba.
CZ’s defense had hoped that he would not spend a single day in prison during the deal negotiations. However, the U.S. Department of Justice (DOJ) dug in its heels and insisted that he serve a sentence in a closed regime, even if it was reduced.
After all, according to the DOJ, this would serve to send a message to the sector, as indicated in a statement from the agency at the time:
“The sentence in this case will not only send a message to Zhao, but also to the world. Zhao has reaped vast rewards for his violation of U.S. law, and the price of that violation must be significant to effectively punish Zhao for his criminal acts and to deter others who are tempted to build fortunes and business empires by violating U.S. law.”
Despite pressure from the DOJ, the judge in the case did not accept the request for a 3-year prison sentence. According to him, there was no evidence that Zhao knew about the illegal activity. The fact that the executive had admitted his responsibility was also taken into account. Therefore, CZ received a sentence of only 4 months, which he ended up serving until last Friday.
CZ kept his fortune during his time in prison
As part of the plea deal, CZ agreed to step down as Binance CEO and pay a $50 million fine. Binance, meanwhile, was fined $4.3 billion, making it one of the largest corporate penalties in U.S. history — at least in financial terms.
Despite legal troubles and fines, the cryptocurrency entrepreneur has maintained an enviable fortune. In fact, the $50 million he had to pay as a personal penalty probably didn’t make a dent in his fortune.
After all, Zhao’s net worth is estimated at around $30.8 billion, according to the Bloomberg Billionaires Index, a ranking that compares the fortunes of billionaires. And all of that money is due mainly to his substantial stake in Binance.
Zhao was granted early release from prison on Friday (September 27), ahead of his scheduled release date. This was due to a US law that prevents the release of prisoners on weekends.
On Binance’s website, CZ’s release was celebrated. In addition, the former CEO’s good humor was highlighted as a demonstration of positivity.
“In an unexpected twist of fate, Changpeng Zhao, known universally as CZ, the former CEO of Binance, has emerged from a brief stint in federal custody not only unharmed but seemingly rejuvenated. His first post after his release was ‘GM’ (short for ‘good morning’), and his second post on X was not a grandiose statement or a deep philosophical reflection on life and justice, but a simple, relatable sentiment: ‘…the food tastes so good… And what a luxury to be able to eat more than one piece of fruit a day!’”
