Changpeng Zhao, better known as CZ, the founder of the cryptocurrency behemoth Binance, has etched his name into history as the richest individual to serve time in a U.S. federal prison. His four-month sentence, which began in June, was handed down for failing to implement effective anti-money laundering measures at the exchange.
At the time of his sentencing, CZ was the 34th richest person in the world with a net worth exceeding $40 billion, according to the Bloomberg Billionaires Index. This wealth was largely derived from his controlling stake in Binance, estimated to be around 90%. Though his fortune has since shrunk to $28.2 billion, dropping him to 61st on the world’s richest list, his title as the richest U.S. prisoner remains.
CZ’s legal troubles are part of a growing trend of cryptocurrency entrepreneurs facing accusations of financial fraud. Last year, as part of a settlement with U.S. authorities, CZ resigned as CEO of Binance, and the company agreed to pay $4.3 billion in fines related to various regulatory enforcement actions. Richard Teng now leads Binance as CEO.
The legal scrutiny extends beyond CZ. Sam Bankman-Fried, the former CEO of collapsed cryptocurrency exchange FTX, was sentenced to 25 years in prison in March for his role in the FTX implosion. Similarly, Do Kwon, the co-founder of Terraform Labs, was found guilty of defrauding investors in April during the collapse of the stablecoin TerraUSD.
Amidst these legal challenges, Binance’s native token, BNB, continues to perform well. At the time of writing, BNB is trading at $520.32, down 1.34% in the last 24 hours, according to data from Benzinga Pro. Despite the legal hurdles, BNB has achieved a 65% year-to-date growth, demonstrating the enduring appeal of the Binance ecosystem.
