Cryptocurrency Magnate Changpeng Zhao, Known as 'CZ', Faces a Four-Month Imprisonment Term
Cryptocurrency King CZ on the Rise Despite Prison Sentence
He might be doing time, but Changpeng "CZ" Zhao isn't slowing down. The Binance co-founder and former CEO's sentence to four months in federal prison Tuesday doesn't seem to be dampening his spirits. In typical CZ fashion, he's already got his eyes on the future, planning new ventures while serving his time.
Associated Press first broke the news of CZ's sentencing, which came as part of Binance's agreement with the U.S. Department of Justice. The company settled legal troubles, allowing it to carry on with a new CEO at the helm. But don't feel too bad for CZ; he's still holding onto 90% of Binance's assets, according to Forbes, which estimates his net worth at a whopping $33 billion.
Prosecutors claim CZ ran Binance with deliberate disregard for the law, enabling criminals to transmit millions of dollars through the platform. They quoted him saying, "Better to ask for forgiveness than permission." The alleged statement was part of a court filing last week.
This isn't the first time a crypto executive has faced jail time. FTX founder Sam Bankman-Fried is currently serving a 25-year sentence, while Binance and CZ are expected to grow their fortunes during his imprisonment.
Binance was established in 2017 by Zhao, quickly becoming the world's largest cryptocurrency exchange in 2018. However, U.S. prosecutors argued that Binance's lack of safeguards allowed criminals to use the platform. An intense legal battle ensued between U.S. regulators and Binance, with CZ insisting that his crypto exchange was a global company and that U.S. law "does not control the world."
After his stint in prison, CZ is planning a grand entrance into the educational sector. He's the mastermind behind Giggle Academy, an online K-12 digital education program that promises to be "free and available to all." The program aims to gamify education and provide access to underprivileged kids in developing countries. And who's funding this ambitious endeavor? CZ himself.
But the punishments for CZ's crimes are relatively light, especially compared to those faced by FTX and Sam Bankman-Fried. He's paying a financial penalty that barely makes a dent in his billions. After his four-month sentence, CZ may just be back in the world doing tech billionaire things.
Stay tuned for more updates as CZ reinvents himself and embarks on new journeys. His story is far from over.
- Despite his four-month prison sentence, Changpeng "CZ" Zhao, the co-founder and former CEO of Binance, is showing no signs of slowing down, as he plans to venture into the educational sector after serving his time.
- Although CZ was sentenced for running Binance with unlawful practices, enabling criminals to transmit millions of dollars through the platform, he remains in control of nearly all of Binance's assets, according to Forbes.
- In the tech world of 2024, Binance's future business operations will be led by a new CEO, while CZ focuses on his educational endeavor, Giggle Academy, which aims to provide free and accessible digital education for underprivileged children in developing countries.
- As CZ's prison sentence nears its end, the tech world watches with interest to see how his fortunes continue to grow and how he will reinvent himself in the years to come.
