Binance founder Zhao Changpeng (CZ) officially entered prison today and is expected to regain his freedom in October. Despite being incarcerated, 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 currently has zero net assets, creating a stark contrast between the two.
In the latest news this morning, Binance CEO Zhao Changpeng (CZ) has officially entered a federal prison with a lower security level in California, USA. As we know, he was sentenced to four months of imprisonment in early May, which is far lower than what the Department of Justice had requested. Now that he has officially been incarcerated, the entire litigation process is gradually coming to an end, and as long as everything develops as expected, CZ will be released in October this year to start a new life.
CZ: The richest prisoner in American history with a net worth of $33 billion
CZ’s charges include willfully 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 Binance CEO and pay a $50 million fine.
According to experts’ analysis, 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 CZ.
On the other hand, CZ’s personal wealth 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 after entering prison. This is because Zhao Changpeng still holds the majority of Binance’s shares, and it is estimated that his personal net worth is approximately $43 billion.
Currently, according to the Forbes Global Billionaires List, CZ is also the 49th richest person in the world, and with the cryptocurrency market rebounding, his wealth may further increase.
SBF: Confiscation of over $11 billion in assets, net assets reduced to $0
In contrast, the situation of SBF, the founder of FTX, which used to be Binance’s biggest competitor, is completely different. SBF was sentenced to 25 years in prison on March 28 this year. Considering his age of 32, he will be close to 60 years old upon release if there is no parole.
SBF’s charges include:
– Wire fraud against FTX customers
– Conspiracy to commit wire fraud against FTX customers
– Wire fraud against borrowers of Alameda Research
– Conspiracy to commit wire fraud against borrowers of Alameda Research
– Conspiracy to commit securities fraud against FTX investors
– Conspiracy to commit commodity fraud against FTX customers
– Conspiracy to commit money laundering and conceal income from wire fraud against FTX customers
Unlike CZ, SBF has consistently refused to plead guilty to the above charges. After defending himself to the best of his ability, he was found guilty on all seven counts by the jury. When the verdict was announced, SBF stood with his hands clasped tightly together, showing a disappointed expression upon hearing the guilty verdict. The presiding judge, Lewis A. Kaplan, also stated that he believed SBF did not truly repent for the very serious crimes, leading to a 25-year prison sentence.
Note: Although his defense lawyers are still preparing to appeal the 25-year prison sentence.
At the same time, SBF has had over $11 billion of personal assets confiscated, including his $30 million mansion in the Bahamas, which is currently being liquidated. According to information from the Forbes website, his net assets have been reduced to $0.
Once hailed as one of the richest people under the age of 30 by Forbes, his current situation is truly lamentable.