Binance founder Zhao Changpeng (CZ) has officially entered prison today and is expected to regain his freedom in October. Despite being imprisoned, CZ’s wealth has not suffered significant losses, earning him the title of “the richest prisoner in American history” by Bloomberg. In contrast, FTX founder SBF was sentenced to 25 years in prison at the end of March and his net assets have now reached zero, creating a stark contrast between the two.
In the latest news this morning, Binance CEO Zhao Changpeng (CZ) has officially entered a federal prison in California with a lower security level. As we know, he was sentenced to four months of imprisonment in early May, which is much lower than what the Department of Justice had originally requested. Now that he has officially entered prison, the lawsuit is gradually coming to an end, and if everything goes as expected, CZ will be released in October this year and start a new life.
CZ, known as the “richest prisoner in American history,” is charged with deliberately failing to implement an effective anti-money laundering program in accordance with the Bank Secrecy Act and allowing Binance to process transactions involving illegal activity proceeds. He pleaded guilty in November last year and agreed to step down as CEO of Binance and pay a $50 million fine.
Experts analyze that CZ’s proactive cooperation, agreement for Binance to pay a one-time compensation of up to $4.3 billion, widespread support, and lack of criminal history ultimately led to a lenient sentence for him.
On the other hand, CZ’s wealth itself has not suffered significant losses despite his imprisonment, even though he has already paid a $50 million fine. However, according to Bloomberg’s report in May, CZ will become the richest prisoner in the history of the Federal Bureau of Prisons due to his majority ownership of Binance, estimating his personal fortune to be around $43 billion.
Currently, according to the Forbes Global Billionaires List, CZ is also the 49th wealthiest person in the world. With the cryptocurrency market rebounding, his wealth may further increase.
In contrast, FTX founder SBF, who was once the biggest competitor of Binance, has a completely different situation. SBF was sentenced to 25 years in prison on March 28 this year. Considering his current age of 32, he will be close to 60 years old when released if there is no parole.
SBF is charged with:
– Wire fraud against FTX clients
– Conspiracy to commit wire fraud against FTX clients
– Wire fraud against Alameda Research borrowers
– Conspiracy to commit wire fraud against Alameda Research borrowers
– Conspiracy to commit securities fraud against FTX investors
– Conspiracy to commit commodity fraud against FTX clients
– Conspiracy to commit money laundering and conceal income from wire fraud against FTX clients
Unlike CZ, SBF has consistently refused to plead guilty to the above charges. After exhausting all his defense efforts, he was found guilty of all seven charges by the jury. When the verdict was read, SBF stood with his hands tightly clasped together, showing disappointment upon hearing the guilty verdict. The presiding judge, Lewis A. Kaplan, also stated that he believed SBF did not truly repent for his very serious crimes, leading to a sentence of 25 years in prison.
Note: Although his defense lawyers are still preparing an appeal for the 25-year prison sentence.
At the same time, SBF has had over $11 billion of personal assets seized, including his $30 million mansion in the Bahamas, which is currently being liquidated. According to information on the Forbes website, his net assets have reached zero.
Formerly one of Forbes’ richest individuals under the age of 30, his current situation is truly lamentable.
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