Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, has surrendered to a federal prison in California to commence a four-month sentence. Zhao, commonly referred to as CZ, was convicted for failing to implement effective anti-money laundering measures within the exchange. At 47 years old, Zhao, now inmate 88087-510, began his term at Lompoc II, a low-security facility in Santa Barbara county known for its more lenient conditions compared to typical federal detention centers.

Zhao's status as a non-US citizen initially pointed to a stay at the Seatac federal detention center in Seattle, a facility that typically houses individuals awaiting trial and sentencing for a broad range of crimes. However, Zhao was instead permitted to report to Lompoc, where the environment is less restrictive, and inmates often work outdoors, including on horse farms.

In April, Zhao received a sentence significantly lighter than the three years prosecutors had sought. Last year, Zhao entered a guilty plea in an agreement with the US government. He traveled from his residence in Dubai to Washington state to surrender voluntarily.

In addition to Zhao's personal sentencing, Binance pleaded guilty to violations of banking law and sanctions, agreeing to pay $4.3 billion to settle the multi-agency investigation into its operations.

Bloomberg Article