Former Chinese Billionaire Sends Two Important Signals to 8.9 Million Followers Before Imprisonment!

A U.S. judge sentenced Binance founder Zhao Changpeng (CZ) to four months in federal prison, but no report date was set during the hearing. Recently, Zhao announced on Twitter his intention to draft a writing plan during his imprisonment. He had also launched a cryptocurrency and blockchain education project called Giggle Academy.

Zhao Changpeng admitted to a felony charge for failing to maintain an effective anti-money laundering program at the exchange. He is expected to report to either the federal correctional camp in Sheridan, Oregon, or the Federal Detention Center in SeaTac, Washington, though the exact date remains undetermined.

In November 2023, Binance reached a historic settlement with the U.S. Department of Justice. Zhao Changpeng admitted to violating U.S. anti-money laundering laws and resigned as Binance CEO, passing the role to Richard Teng. Zhao also paid $175 million in bail. While awaiting sentencing, Zhao returned to the public eye.

Before and after his sentencing hearing, Zhao remained active on social media, hinting at his new plans. He launched Giggle Academy, an educational project aimed at young people focused on gamified learning experiences and adaptive education mechanisms, with no profit motive.

Zhao reached out to his 8.9 million Twitter followers, hinting at ways to pass the time in prison.

He implied that he has "nothing else to do" but read and wait for his report date.

Zhao also mentioned that he plans to draft a writing schedule during his imprisonment.

In November 2023, after pleading guilty, Zhao traveled within the U.S. on $175 million bail. He may remain free until the Probation or Pretrial Services Office notifies his legal team of the location and time to report.

With an estimated net worth of $33 billion, Zhao Changpeng is set to become one of the wealthiest individuals ever to be incarcerated. Before sentencing, his lawyers submitted expert statements indicating that his wealth and status might pose risks of theft and extortion.

These factors may have influenced the judge's decision not to order immediate imprisonment. The Federal Bureau of Prisons is likely considering which facility would pose the least risk of physical harm to Zhao during his four-month sentence. Both FDC SeaTac and FCI Sheridan house violent offenders.

"After sentencing, the Bureau of Prisons uses the presentence report to designate an appropriate facility for the offender, select prison programs to aid the offender, and develop case plans for their detention and eventual release," according to the website of the Probation or Pretrial Services Office for the Western District of Washington.

As part of the November agreement between Binance and U.S. authorities, Zhao Changpeng has already paid a $50 million fine.

The cryptocurrency exchange agreed to pay $4.3 billion to settle "civil regulatory enforcement actions," though this does not resolve the lawsuit filed by the U.S. Securities and Exchange Commission (SEC).

This means that while lawsuits with the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) have concluded, the SEC seems unwilling to let Binance off the hook, and the exchange may still face new regulatory challenges.