After the four-month sentence of Zhao Changpeng was announced, He Yi, on social media, only replied with two words, “Got it.” Perhaps, everyone understood.
(Previous summary: CZ: Thank you for your concern and support. After serving the sentence, I will focus on the next chapter of my life.)
(Supplementary background: Good news! Binance’s Zhao Changpeng receives “only a four-month prison sentence.” What did CZ say in court?)
Table of Contents:
Why did Zhao Changpeng receive such a low sentence?
Has Zhao Changpeng already started planning for his release?
How did the market react after Zhao Changpeng’s four-month sentence?
On April 30th, local time, the US Western District Court of Washington held a hearing where Judge Richard Jones announced a four-month imprisonment for Zhao Changpeng, the former CEO of Binance. Thus, the Zhao Changpeng case that has attracted great attention from both inside and outside the cryptocurrency industry finally came to a close.
Many foreign media outlets reported that Zhao Changpeng would become the richest prisoner in the history of the United States, and even the world. According to Forbes’ list, Zhao Changpeng’s personal total assets are approximately $33 billion (about 239 billion RMB), ranking 50th on the Forbes Global Billionaires List for 2024. His imprisonment means that he will become the richest prisoner in the world.
In reality, Zhao Changpeng is quite different from FTX founder SBF because Binance and its founder Zhao Changpeng did not embezzle customer funds.
Furthermore, compared to SBF, who did not surrender to the court and chose a foolish defense trial, Zhao Changpeng reached a plea agreement early on, agreeing to pay a fine of up to $4.3 billion and expressing remorse.
During the lengthy 2.5-hour sentencing hearing, the 47-year-old billionaire Zhao Changpeng was no longer an ordinary criminal defendant but rather a philanthropist, a doer of good deeds, a first-time offender, and a family man. He surrendered and accepted whatever consequences may arise.
Zhao Changpeng’s “good guy” reputation influenced the final judgment of the judge. Compared to the US Department of Justice’s strong recommendation of a three-year sentence for Zhao Changpeng, the judge ultimately gave an extremely light sentence of four months.
Judge Richard Jones stated that he had read all 161 letters submitted because it was important to understand who Zhao Changpeng was. He also mentioned that he had never seen so many letters, not only from family members but also from people who have known Zhao Changpeng for a long time.
Richard Jones pointed out that these letters depicted a person driven by motivation, passion, and determination. Zhao Changpeng took on the risk of all his net assets just to make Binance successful. The letters clearly showed that Zhao Changpeng is a person dedicated to his family and cited examples of Binance’s charitable endeavors.
After being sentenced to four months in prison, Zhao Changpeng’s life story may be just a small episode because even before the verdict was announced, he had already begun establishing networks across the United States to plan for his next move.
After admitting to money laundering in November 2023, Zhao Changpeng did not sit idly by. Although he cannot return to Dubai in the United Arab Emirates, he can still freely travel within the United States. This allows him ample time to travel across the country, establish connections with local entrepreneurs, and lay the foundation for his next steps.
According to disclosed information, Zhao Changpeng had a casual dinner with a former US senator in Montana, visited the town of Telluride in Colorado and a vacation resort in Utah. More importantly, Zhao Changpeng also met with Sam Altman, the CEO of OpenAI.
Last month, Zhao Changpeng announced that he would launch a new project to promote online education. He also expressed interest in investing in artificial intelligence and biotechnology. Two sources revealed that Zhao Changpeng exchanged contact information with Sam Altman as early as the end of last year and discussed the adjustments required for global expansion in startups.
Insiders disclosed that Zhao Changpeng had a meeting with Sam Altman about a year ago and had further contact during the power struggle for leadership at OpenAI in November 2023.
A month later, in December 2023, Zhao Changpeng had hot pot with Gu Ronghui, a professor in the Department of Computer Science at Columbia University and co-founder of CertiK, in Los Angeles. Gu Ronghui confirmed in an interview that Zhao Changpeng had communicated with Sam Altman. Both believe that artificial intelligence plays a significant role in the development of technology and human knowledge. CertiK is a web3 security company funded by Binance. Zhao Changpeng also revealed that he is currently “seeking opportunities” to invest in large data centers that support AI applications.
As of now, Zhao Changpeng and representatives from OpenAI have refused to comment on their meeting with Sam Altman.
On the other hand, in a letter submitted to the court, Zhao Changpeng revealed that he has been in talks with some biotech startups in recent months and plans to focus on disease prevention as a key focus of his next chapter in life. Zhao Changpeng stated, “I want to help fund small research labs with the goal of permanently curing diseases and using blockchain technology to provide medical services to billions of people worldwide.”
In March of this year, Zhao Changpeng announced on X platform that he is launching a project called Giggle Academy, a free online learning platform for children. The Giggle Academy website has already released a seven-page “concept file” stating that the platform will involve artificial intelligence, automation, and NFT digital collectibles. It is said that Giggle Academy is not profit-oriented, and Zhao Changpeng is recruiting a small team to work directly with him. This means that once Zhao Changpeng is released from prison, he is likely to be involved in this work and may even achieve it within a year.
During Zhao Changpeng’s hearing, BNB saw an increase and is currently maintaining around $580. In the past 24 hours, the decline has narrowed to 2.8%.
Zhao Changpeng’s wife, He Yi, only replied with two words, “Got it,” on social media. Perhaps, everyone understood.
After being sentenced to a four-month prison term, Binance CEO CZ responded to the concerns of the cryptocurrency community on X platform. Some community members believe that CZ is the person who has made the most contributions to the crypto world since Satoshi Nakamoto. While Satoshi Nakamoto created Bitcoin, CZ is the person who brought Bitcoin to the world.
In response, CZ stated, “I myself am not that important, but I do try to make positive contributions to Bitcoin.”
Furthermore, he expressed gratitude for the care and support everyone has given, whether it be through letters, support on X platform, or other forms. These have encouraged him and kept him strong. CZ also stated that he will continue to be a passive investor (and holder) of cryptocurrencies. Our industry has entered a new stage where compliance is very important. CZ also mentioned that the one hope throughout the entire process was for Binance to remain under a microscope and for the funds to be SAFU (i.e., safe). Finally, he emphasized the importance of protecting users.
Related Reports:
CZ, former CEO of Binance, “sentenced to only four months of probation”! Adjourned immediately after the verdict, leaving the court with defense lawyers.
Can CZ buy a prison? Bloomberg: If imprisoned, he will become the richest prisoner in US history, with a net worth of at least $43 billion.
CZ’s sentence betting market? Polymarket: 44% optimistic that Zhao Changpeng will be “imprisoned for less than six months.”