Finally, Binance’s former CEO CZ is in Jail for up to the next 4 months 

Reportedly CZ has begun serving his sentence in federal prison in Lompoc. 

Changpeng Zhao (CZ) is former CEO & co-founder of Binance crypto exchange. In 2022, he faced charges of violation of AML measures in the US, as his crypto exchange allowed US citizens to use the platform without necessary KYC verification & later Binance was accessible in the US jurisdiction through Virtual Private Network (VPN) services. Allegedly Binance team intentionally allowed ways for US citizens to access Binance, which was operating without all necessary regulatory approvals.

On 31 May 2024, CNBC reported that CZ is now serving a four-month sentence at a low-security federal prison in Lompoc, California. 

Earlier this on 1 May, the US court judge Judge Richard Jones ruled 7 months of jail imprisonment against CZ over money laundering charges. 

Before the court judgement, the majority of the US authorities were trying to punish CZ for up to 2-3 years of jail but the court judge noted that CZ himself admitted all the charges, despite the fact there was no real evidence against him to prove the charges. 

Binance vs legal hurdles 

Currently, the Binance crypto exchange is facing huge legal hurdles in multiple jurisdictions. Even the Binance firm settled its case with the US authorities but still its, case is active against the United States Securities and Exchange Commission (SEC). 

As per the SEC’s suit, Binance had unlawfully operated as an unregistered securities exchange, broker, and clearing agency. 

Experts believe that clarity on the rules & laws around cryptocurrencies will solve these conflicts between the regulatory body & the top crypto player because the SEC body used all the traditional rules & laws against Binance, which are not applicable on the digital assets.

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