In a surprising turn of events, Binance founder Changpeng Zhao, better known as “CZ” in the crypto world, revealed a curious encounter during his recent stint in a California correctional facility. While serving a four-month sentence for pleading guilty to U.S. money laundering charges, Zhao found himself fielding cryptocurrency investment advice requests from prison guards.
During his speech at the Binance Blockchain Week in Dubai, CZ recounted the incident: “A couple of guards recognized me and then asked me, ‘What coin should I buy?” However, due to limited access to information and internet restrictions within the prison, Zhao couldn’t provide any meaningful advice. “I told them, look, I’m inside. I don’t have any access to information… so we don’t talk about crypto,” he explained.
Despite his situation, this interaction highlights the pervasiveness of cryptocurrency interest, reaching even into correctional facilities. It underscores the growing mainstream acceptance of digital currencies.
Zhao’s legal troubles stem from accusations that Binance, under his leadership, failed to adequately monitor and report over 100,000 suspicious transactions linked to groups like Hamas, al-Qaeda, and ISIS. Prosecutors also cited Binance’s role in facilitating the sale of child exploitation materials and the processing of significant ransomware earnings. These violations resulted in a $4.32 billion penalty for Binance and a personal $50 million criminal fine, along with an additional $50 million payment to the Commodity Futures Trading Commission (CFTC) for Zhao.
Beyond the legal issues, Zhao shared his observations of prison life, describing inmates as “very nice people.” He even commented on the seemingly disproportionate sentencing for some, saying, “I think a decent portion of them have no reason to be there… they’re super nice guys.”
This unexpected tale of crypto advice within prison walls serves as a reminder of the expanding reach of cryptocurrency and the evolving regulatory landscape surrounding the industry. As the digital asset landscape continues to evolve, discussions on these critical topics will be central to upcoming events like Benzinga’s Future of Digital Assets event on Nov. 19, which will delve into the complexities of regulation and its impact on the future of digital currencies.
