Changpeng Zhao, arguably the richest crypto holder, is going to prison

Changpeng Zhao. Bild von Web Summit via flickr.com. Lizenz: Creative Commons BY 2.0 Deed

The founder and former CEO of Binance, arguably the world’s largest crypto exchange, was sentenced to four months in prison in April for knowingly allowing money laundering.

You can accuse Changpeng Zhao of many things, but not of shying away from taking responsibility.

When the US Department of Justice indicted Binance and Zhao himself last November for allowing money laundering and terrorist financing, others might have gone to great lengths to avoid setting foot on US territory. However, Zhao faced the court and pleaded guilty to violating anti-money laundering regulations.

He stepped down as CEO of Binance, paid a fine of 50 million dollars, and faced another court proceeding. It appears he paid the price for the exchange to continue operating; more dramatically put, he sacrificed himself so that his creation could continue to live.

To be fair, the sacrifice is relatively manageable. Changpeng Zhao, likely a multi-billionaire, can easily afford the 50 million dollar fine. He might possibly earn that much per month, if not per week, from his shares in Binance.

Even the four-month prison sentence he was handed in April is manageable. The prosecution asked for three years, while the defense requested five months probation. The compromise was apparently four months without probation.

Zhao expressed remorse: „I’m sorry. I believe the first step is to take responsibility and fully admit my mistakes. I failed to establish adequate anti-money laundering programs, and I now understand how serious this mistake is.“

At the end of May, Zhao began serving his prison sentence. He was transferred to a low-security prison in Lompoc, California. In a way, this marks the beginning of a long-deserved break he has been yearning for. According to his own statements, he hasn’t taken a single day off in the last six and a half years.