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Community discussion after the sentencing of Zhao Changpeng CZ: the wealthiest convict in history, unable to be released early?

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Community discussion after the sentencing of Zhao Changpeng CZ: the wealthiest convict in history, unable to be released early?

Following the sentencing of Binance's former CEO Changpeng Zhao, also known as CZ, to four months in prison for money laundering yesterday morning, the cryptocurrency community has reacted fervently. Several former Binance executives and legal experts have expressed their support for the verdict. However, there is also a faction within the community who are dissatisfied with the ruling, labeling it as a "serious judicial error."

CZ Courtroom Update: Judge Sentences to Four Months

CZ Thank-You Note: Focusing on Education

Following the sentencing hearing, CZ expressed his gratitude to the crypto community that supported him through social media this morning, stating that he is entering the next phase of his work and will continue to passively invest in cryptocurrencies.

Thank you all for your concern and support, whether it was through letters, on X, or in any other form of support, it means a lot to me. I will be entering prison and concluding this phase, focusing on the next chapter of my life in education, and will continue to be a passive investor and holder of cryptocurrencies.

He also added, "One optimistic aspect of the whole process is that Binance has undergone strict scrutiny, yet the funds remain secure."

Earlier in April, CZ announced the launch of a high-quality education platform that will be free and open to everyone, with specific course details and format yet to be disclosed.

Zhao Changpeng Education Institute Giggle opens for registration, Beta version coming soon

Bloomberg: The Wealthiest Inmate in a U.S. Federal Prison

Firstly, Bloomberg titled an article yesterday as "The Wealthiest Inmate in a U.S. Federal Prison," referring to CZ:

After being sentenced to four months in prison, the former CEO will become the wealthiest prisoner in U.S. history.

The report estimates CZ's wealth to be over $43 billion, including ownership of Binance and other personal assets, with the potential to grow further as the crypto market continues to expand during his incarceration.

Forbes Crypto Billionaires List: CZ holds the top spot for three consecutive years, Paolo Ardoino makes his debut

Positive Voices

Former Binance Executive Supports CZ: Fair Judgment

Additionally, former Binance Chief Strategy Officer Patrick Hillmann voiced his support for CZ, stating that he had already prepared Binance for global regulatory frameworks:

I witnessed CZ reorganize the executive team in 2021 and prepare Binance for global regulation. Considering CZ's efforts to correct his mistakes, Judge Jones made a fair judgment on this.

Legal Experts: Sending a Compliance Message to the Crypto Industry

Some lawyers also believe that the judge's ruling in this case should sufficiently convey clear compliance requirements to the entire crypto industry.

Melbourne RMIT Blockchain Innovation Center legal advisor Aaron Lane stated:

The judge not only made a ruling on CZ personally but also sent a message to the entire industry that strict compliance with anti-money laundering regulations is necessary.

David Chung, founder of Creo Legal, believes that CZ simply failed to comply with anti-money laundering rules and was not involved in money laundering or other criminal activities:

The imprisonment may be a bit excessive; significant fines and resignation penalties may be more appropriate, as Binance has agreed to.

Criticism

However, Better Markets CEO Dennis Kelleher and Swan Bitcoin Managing Director Terrence Yang expressed displeasure with the ruling, seeing it as a serious "judicial error":

This is merely a meaningless sweetheart deal between the U.S. Department of Justice and CZ: a ridiculous fine of only $50 million, which is less than 0.01% of his total assets, and just 4 months of imprisonment.

Kelleher believes that Binance remains a thriving enterprise, CZ's wealth will continue to grow alongside Binance and the crypto market, and he will retain potential control over Binance through his significant shareholding.

CZ May Not Be Released Early

Regarding speculations about whether CZ will be released early for good behavior, U.S. Federal Prison Consultant Sam Mangel stated:

It appears that CZ will not benefit from any plans for early release and is expected to serve the full 120-day sentence in a federal prison.

He added, "He will spend this time in a low-security level facility, but not the least secure prison facility."