Changpeng Zhao, Wants To Write During A Four-month Prison Period

Former CEO of the Binance crypto exchange Changpeng CZ Zhao (photo: x @JakeGagain)

JAKARTA - Former CEO of the Binance crypto exchange Changpeng CZ Zhao, stated that he plans to "wrote something" during his four-month prison sentence.

At a April 30 hearing, Judge Richard Jones sentenced Zhao to four months in prison. The former Binance CEO pleaded guilty to one criminal charge for failing to maintain an effective Anti-Money Laundering program on the exchange. Zhao is expected to report to Camp at the Federal Correctional Institution Sheridan in Oregon or the Federaltention Center SeaTac in Washington on an undetermined date.

Prior to and after the trial, CZ remained active on social media, hinting at his plans on platform X. The former Binance CEO launched a crypto and blockchain education program focused on a young man named Giggle Academy. He also asked his 8.9 million followers on X for advice on how to spend time in prison.

Zhao suggested that he had nothing else to do but read books and wait until the date of his reporting. He pleaded guilty to the indictment in November 2023 and was allowed to remain out of prison and travel in the United States with a guarantee of 175 million US dollars (Rp. 2.7 trillion). He will likely remain free until the Office of Probation or Pretrial Services tells his legal team where and when he should report.

With an estimated net worth of US$33 billion (Rp526.8 trillion), CZ will be one of the richest individuals to ever go to prison. Before being sentenced, Zhao's lawyer filed a declaration from experts suggesting that his wealth and status could pose a risk of theft and extortion.

These factors may have contributed to Jones' decision not immediately ordering CZ to go to prison. The Federal Prison Bureau may consider which facilities could pose Zhao the least physical risk during his four-month detention period of both FDC SeaTac and FCI Sheridan housing violators of violence.

"After the sentencing, a pretrial report was used by the Prison Bureau to establish appropriate institutions for violators to serve their sentences, choose a prison program to help violators, and develop a case plan for their detention and release in the future," the Office of Probation or Pretrial Services said in a statement on the website of the Western District of Washington.

Zhao has paid a fine of 50 million US dollars (Rp798.2 billion) as part of an agreement between Binance and US authorities in November. The crypto exchange agreed to pay US$4.3 billion (Rp68.6 trillion) to resolve "acts of enforcement of civilian regulations," but the matter has yet to settle a lawsuit filed by the US Securities and Exchange Commission.