Changpeng ‘CZ’ Zhao, the founder and former CEO of Binance has started serving his four months jail term at a low-security Federal prison in Lompoc, California, per a CNBC report.
CZ’s Four Months Lenient Jail Sentence
CZ’s legal team at Latham and Watkins corroborated the report of his prison custody. The Binance founder received the four-month sentence about a month ago from Judge Richard Jones after he was found guilty of violating the US Bank Secrecy Act (BSA). The jail team turned out to be a soft landing for CZ as many observers expected the court to pronounce a 3-year jail term.
As a show of leniency, Judge Jones decided to pitch tent with the recommendation of the Probation Office that sets 10 to 16 months jail term, hence pronouncing the 4- month sentence. During the sentence hearing, the Binance founder told the U.S. District Court:
“I’m sorry. I believe the first step in taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program. … I realize now the seriousness of that mistake.”
Several members of the crypto community publicly commended the Binance founder’s resignation and jail move. Observers stated that it is a positive move by CZ, as it protects Binance from potential risks
What the Future Holds For Former Binance Founder
Beyond his jail sentence, CZ has plans to continue with crypto and other ventures. He intends to still hold and passively invest in digital currencies. CZ sees this period as “a new stage for the crypto industry,” underscoring the importance of compliance with regulations and rules.
He recently unveiled his new focus on education with the launch of Giggle Academy. This project is designed to provide free basic education for all across multiple jurisdictions. According to CZ, it would have no revenue, it will deploy gamification and an adaptive curriculum for end users.
The hiring process for employees started a few weeks back and so far Giggle Academy has onboarded a team of 10 people.
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