Law firm Latham & Watkins, which is defending the rights of Changpeng Zhao, confirmed that the former head of Binance is already in custody. In April, Zhao was sentenced to four months in federal court in Seattle after he admitted failing to properly implement the exchange's know-your-customer (KYC) procedures and ensure compliance with anti-money laundering (AML) regulations.
The sentence for the former Binance executive turned out to be significantly lighter than the three-year sentence sought by prosecutors. Zhao's lawyers tried to persuade the court to place their client on five months probation, and the sentencing guidelines called for a prison term of 12 to 18 months.
In November 2023, Zhao reached an agreement with the US government, leaving his post as CEO of the exchange. Although Zhao no longer holds a senior position at the company, he retains approximately 90% of Binance shares, media reports say.
Zhao shared his plans after serving his prison sentence in Lompoc. The entrepreneur will continue to hold and passively invest in cryptocurrencies. Zhao emphasized that it is important for crypto companies to comply with regulatory rules and regulations. In May, the ex-Binance CEO promised to write a book during his time in prison.
Source: Bits
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