Changpeng Zhao, better known as “CZ”, the former CEO of Binance and once considered one of the most influential figures in the cryptocurrency industry, was sentenced to four months in prison. This sentence came after Zhao pleaded guilty to violating US money laundering laws. Zhao’s conviction makes him the second major cryptocurrency executive to face prison time, following Sam Bankman-Fried, founder of the now-bankrupt FTX exchange, who was sentenced to 25 years in prison for embezzling billions of dollars from customers.

Zhao’s sentencing took place on April 30, marking a major turning point in the cryptocurrency world. Zhao was free on $175 million bail before being sentenced. As part of the plea agreement, he agreed not to contest any penalties under federal rules and paid US$50 million to the US Commodity Futures Trading Commission. His deal also included a $4.3 billion agreement to resolve a lengthy investigation into Binance’s operations.

Born in China in 1977, Zhao moved to Canada at the age of 12 in 1989, following the crackdown on Tiananmen Square. He went on to work in Tokyo, New York, and eventually Shanghai, where he discovered the emerging cryptocurrency. In 2017, he founded Binance, which quickly became the world’s largest crypto exchange. But despite the decline in market share this year, Binance still controls about half of global crypto trading volume.

Known for his secretive and authoritarian leadership style, Zhao kept Binance tightly under control, often making key decisions regarding operational details while communicating with global leaders on social media. He also created a close circle of partners, many of whom had ties to China. Even as Binance expanded, Zhao’s control over the company remained strong.

Zhao, whose net worth is estimated at Rs 3,59,058 billion, is not only the richest person in the crypto world but also possibly the richest person to have ever served time in prison. The guilty plea and prison sentence point to the increasing regulatory pressures facing the crypto industry. As Binance moves forward without its founder at the helm, the industry will closely monitor how the company adapts to ongoing regulatory scrutiny and evolving financial regulations.

DNA application can now be downloaded from the Google Play Store. Please download the app and share your feedback with us.