Binance former CEO Changpeng "CZ" Zhao will retain 90% of his shares in the crypto firm even as he heads to prison for four months.
Zhao has already begun serving his sentence on May 31, at a low-security federal prison in Lompoc, California, after pleading guilty to violating anti-money laundering laws.
Despite going to prison and stepping down as CEO, CNBC News reported that Zhao's massive wealth, including his $33 billion fortune and Binance shares, will remain undisturbed.
The estimated value is already after the Binance ex-CEO paid a $50 million fine per the prosecution's demands.
As of writing, Binance's net worth is estimated to be $87.77 billion with further growth expected as the crypto market finally recovers from the previous "Crypto Winter."
Zhao indicated earlier plans to continue with "passive investing" in blockchain, biotech, and AI businesses after serving his time.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
— CZ 🔶 BNB (@cz_binance) November 21, 2023
Binance is no longer a baby. It is…
Federal Crackdown on Crypto Fallout Comes to a Close
With Zhao already in prison, federal crackdowns on the crypto market's legal mess from 2021 finally nears its conclusion.
Aside from Zhao, former FTX CEO and founder Sam Bankman-Fried has started serving his 25-year jail sentence, with three years of supervised release.
The collapse of FTX and subsequent investigations have led to the arrest of both Zhao and Bankman-Fried, who was found guilty of seven counts of wire fraud, conspiracy, and money laundering.
Unlike Zhang, however, the government seized most of Bankman-Fried's investments and assets as it tried to return the stolen money from affected customers.
With the Securities and Exchange Commission handling all legal crypto market trades, experts believe similar incidents would be rarer under federal supervision.
Related Article : FTX to Return Stolen Money to At Least 98% of Affected Customers
Binance Moves Away from the Changpeng Zhao Brand
While Zhao may still have his financial hold on Binance, the company is doing everything to move away from its former CEO.
In a blog post, Binance announced that it has started replacing Zhao's board position with two new shareholders as a "strategic step" to comply with market regulations.
Its France branch has also dropped Zhao's brand across company models as it undergoes "significant changes."
