Binance founder Changpeng Zhao begins prison term

Binance founder Changpeng Zhao has officially begun his four-month prison sentence in the US. Will he return to the crypto exchange after that?

A month after his conviction, Binance founder Changpeng Zhao began his prison term in the US, according to CNBC. The founder of the world's largest crypto exchange is housed in a low-security prison in Lompoc, Calif.

In early May, a U.S. court imposed a four-month prison sentence on the Canadian with Chinese roots. Initially, the prosecution had demanded a three-year prison term. At the sentencing, Zhao apologized for his misdeeds.

On social media, many parts of the crypto community expressed solidarity with the Binance founder.

CZ came into the crosshairs of authorities during U.S. investigations into Binance. The company and the judiciary reached an out-of-court settlement. The crypto exchange paid a US$4.3 billion fine.

During the course of the proceedings, the competent U.S. court ruled that the 47-year-old had failed to implement effective anti-money laundering measures on the trading platform. CZ subsequently stepped down as CEO. Richard Teng took his place.

The Binance founder announced prior to his imprisonment a wanting to write a book in jail. Regardless, CZ stressed that he would remain loyal to the crypto industry. Some even consider a return to Binance possible after serving his sentence.