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Former Binance CEO CZ Zhao Plans to Write During Four-Month Prison Term
Former Binance CEO, Changpeng “CZ” Zhao, plans to “write something” during his upcoming four-month prison term. Judge Richard Jones sentenced Zhao on April 30 to four months in prison after he pleaded guilty to one felony charge for failing to maintain an effective Anti-Money Laundering program at Binance.
Zhao is expected to serve his time either at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington, though the reporting date was not determined at the time of publication.
Despite his legal troubles, CZ has remained active on social media.
He launched Giggle Academy, a youth-focused crypto and blockchain education program, and engaged with his 8.9 million followers on X, seeking suggestions on how to pass the time in prison.
With a net worth of $33 billion, CZ would be one of the wealthiest individuals to serve time in prison.
His legal team argued that his wealth and status could make him a target for theft and extortion, potentially influencing the judge’s decision to allow him to remain free until the Probation or Pretrial Services Office decides his reporting details.
During this period, Zhao has kept himself busy, mentioning on X that he has “nothing else to do” but read books and wait for his reporting date.
READ MORE: Oobit Mobile Payment App Integrates with Tether’s USDT and XAUt on TON for Streamlined Transactions
He pleaded guilty in November 2023 and has since been free on a $175 million bond, restricted to travel within certain U.S. areas.
The Federal Bureau of Prisons is likely considering which facility would be safest for Zhao, given that both FDC SeaTac and FCI Sheridan house violent offenders.
According to the Probation or Pretrial Services Office of the Western District of Washington, presentence reports help the Bureau designate suitable institutions, select prison programs, and develop case plans for custody and eventual release.
In November, Zhao paid a $50 million penalty as part of a deal between Binance and U.S. authorities.
Binance agreed to pay $4.3 billion to settle civil regulatory enforcement actions, though this did not resolve a separate lawsuit filed by the U.S. Securities and Exchange Commission.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Zhao is expected to serve his time either at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington, though the reporting date was not determined at the time of publication.
Despite his legal troubles, CZ has remained active on social media.
He launched Giggle Academy, a youth-focused crypto and blockchain education program, and engaged with his 8.9 million followers on X, seeking suggestions on how to pass the time in prison.
With a net worth of $33 billion, CZ would be one of the wealthiest individuals to serve time in prison.
His legal team argued that his wealth and status could make him a target for theft and extortion, potentially influencing the judge’s decision to allow him to remain free until the Probation or Pretrial Services Office decides his reporting details.
During this period, Zhao has kept himself busy, mentioning on X that he has “nothing else to do” but read books and wait for his reporting date.
READ MORE: Oobit Mobile Payment App Integrates with Tether’s USDT and XAUt on TON for Streamlined Transactions
He pleaded guilty in November 2023 and has since been free on a $175 million bond, restricted to travel within certain U.S. areas.
The Federal Bureau of Prisons is likely considering which facility would be safest for Zhao, given that both FDC SeaTac and FCI Sheridan house violent offenders.
According to the Probation or Pretrial Services Office of the Western District of Washington, presentence reports help the Bureau designate suitable institutions, select prison programs, and develop case plans for custody and eventual release.
In November, Zhao paid a $50 million penalty as part of a deal between Binance and U.S. authorities.
Binance agreed to pay $4.3 billion to settle civil regulatory enforcement actions, though this did not resolve a separate lawsuit filed by the U.S. Securities and Exchange Commission.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
🚨💥 On this day two years ago, Terra LUNA suffered a catastrophic collapse, plummeting 99.999% in value and erasing $7 billion within days. The price dropped from $100 to less than $0.002, leaving investors devastated. The crash was triggered by Terra’s algorithmic stablecoin, UST, losing 40% of its value. Founder Do Kwon fled but was later captured in Montenegro and now faces charges in South Korea. Despite attempts to revive the project with new coins, both LUNA and LUNC have failed to recover. Is this the ultimate warning for crypto investors? 📉🔍
$USTC $LUNC $LUNA #coinaute #Binance #DeFi #DEX #CZ
$USTC $LUNC $LUNA #coinaute #Binance #DeFi #DEX #CZ
Changpeng Zhao Teases Writing Project Ahead of Reporting to Prison
The former CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, has suggested he plans to “write something” during his upcoming four-month incarceration.
At an April 30 hearing, Judge Richard Jones sentenced Zhao to four months in prison. The former Binance CEO pleaded guilty to one felony charge for failing to maintain an effective Anti-Money Laundering program at the exchange. Zhao is expected to report to either the Camp at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington at a date that had not been determined at the time of publication.
Before and after the sentencing hearing, CZ remained active on social media, hinting at his plans on X. The former Binance CEO launched a youth-focused crypto and blockchain education program called Giggle Academy. He also reached out to his 8.9 million X followers, hinting at suggestions on how to pass the time in prison.
Source: Changpeng Zhao
Zhao suggested he had “nothing else to do” but read books and wait until his reporting date. He pleaded guilty to the felony charge in November 2023 and was allowed to remain out of jail and travel within areas of the United States on a $175 million bond. He will likely continue to be free until the Probation or Pretrial Services Office notifies his legal team where and when he will be required to report.
With an estimated net worth of $33 billion, CZ would be one of the wealthiest individuals to ever go to prison. Before sentencing, Zhao’s lawyers submitted declarations from experts suggesting that his wealth and status could pose a risk of theft and extortion.
Related: Changpeng Zhao gets 4 months, Sam Bankman-Fried gets 25 years — Why?
These factors could have contributed to Judge Jones not immediately ordering CZ behind bars. The Federal Bureau of Prisons may be weighing which facility could present the least risk of physical harm to Zhao during his four-month imprisonment — both FDC SeaTac and FCI Sheridan house violent offenders.
“After sentencing, [...] presentence reports are utilized by the Bureau of Prisons to designate the institutions appropriate for offenders to serve their sentences, to select prison programs to help the offenders, and to develop case plans for their custody and eventual release,” states the Probation or Pretrial Services Office of the Western District of Washington’s website.
Zhao already paid a $50 million penalty as part of a deal between Binance and U.S. authorities in November. The crypto exchange agreed to pay $4.3 billion to settle “civil regulatory enforcement actions,” but the matter did not resolve a lawsuit filed by the U.S. Securities and Exchange Commission.
Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame
At an April 30 hearing, Judge Richard Jones sentenced Zhao to four months in prison. The former Binance CEO pleaded guilty to one felony charge for failing to maintain an effective Anti-Money Laundering program at the exchange. Zhao is expected to report to either the Camp at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington at a date that had not been determined at the time of publication.
Before and after the sentencing hearing, CZ remained active on social media, hinting at his plans on X. The former Binance CEO launched a youth-focused crypto and blockchain education program called Giggle Academy. He also reached out to his 8.9 million X followers, hinting at suggestions on how to pass the time in prison.
Source: Changpeng Zhao
Zhao suggested he had “nothing else to do” but read books and wait until his reporting date. He pleaded guilty to the felony charge in November 2023 and was allowed to remain out of jail and travel within areas of the United States on a $175 million bond. He will likely continue to be free until the Probation or Pretrial Services Office notifies his legal team where and when he will be required to report.
With an estimated net worth of $33 billion, CZ would be one of the wealthiest individuals to ever go to prison. Before sentencing, Zhao’s lawyers submitted declarations from experts suggesting that his wealth and status could pose a risk of theft and extortion.
Related: Changpeng Zhao gets 4 months, Sam Bankman-Fried gets 25 years — Why?
These factors could have contributed to Judge Jones not immediately ordering CZ behind bars. The Federal Bureau of Prisons may be weighing which facility could present the least risk of physical harm to Zhao during his four-month imprisonment — both FDC SeaTac and FCI Sheridan house violent offenders.
“After sentencing, [...] presentence reports are utilized by the Bureau of Prisons to designate the institutions appropriate for offenders to serve their sentences, to select prison programs to help the offenders, and to develop case plans for their custody and eventual release,” states the Probation or Pretrial Services Office of the Western District of Washington’s website.
Zhao already paid a $50 million penalty as part of a deal between Binance and U.S. authorities in November. The crypto exchange agreed to pay $4.3 billion to settle “civil regulatory enforcement actions,” but the matter did not resolve a lawsuit filed by the U.S. Securities and Exchange Commission.
Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame
Former Binance CEO Revives 5-Year Bitcoin Call
In a surprising move, the former CEO of Binance, CZ, has resurfaced on social media to remind everyone of a Bitcoin (BTC) prediction he made five years ago. CZ, who is currently serving a four-month prison sentence in the U.S., referred to a 2019 post where he predicted significant changes once Bitcoin's price surpassed $8,000.
card
With Bitcoin now trading above $66,000 and having reached highs near $74,000, his forecast appears accurate.
5 years ago...
— CZ 🔶 BNB (@cz_binance) May 16, 2024
CZ's reappearance on social media has sparked curiosity, especially given his current legal troubles. In April, he was sentenced to four months in prison after pleading guilty to money laundering charges, following his resignation as CEO of Binance.
The cryptocurrency exchange also agreed to a substantial fine of $4.3 billion. Prosecutors had initially sought a three-year sentence for the 47-year-old entrepreneur, making his four-month term seem notably light.
Path to the top
During his tenure, CZ was a pivotal figure in the cryptocurrency world, guiding Binance to become one of the largest and most influential exchanges globally. His decision to resurface and comment on Bitcoin's price trajectory has intrigued both supporters and critics, highlighting his continued influence in the crypto community.
card
BTC to USD by CoinMarketCap
Bitcoin itself has seen monumental growth since CZ's initial prediction. The cryptocurrency boasts a market capitalization of $1.3 trillion and has established itself as a key asset on the financial market, alongside traditional investments like gold and equities.
Its integration into mainstream finance is underscored by the approval of a spot ETF on the U.S. stock market, broadening its appeal to a wide range of investors, including pension funds.
card
With Bitcoin now trading above $66,000 and having reached highs near $74,000, his forecast appears accurate.
5 years ago...
— CZ 🔶 BNB (@cz_binance) May 16, 2024
CZ's reappearance on social media has sparked curiosity, especially given his current legal troubles. In April, he was sentenced to four months in prison after pleading guilty to money laundering charges, following his resignation as CEO of Binance.
The cryptocurrency exchange also agreed to a substantial fine of $4.3 billion. Prosecutors had initially sought a three-year sentence for the 47-year-old entrepreneur, making his four-month term seem notably light.
Path to the top
During his tenure, CZ was a pivotal figure in the cryptocurrency world, guiding Binance to become one of the largest and most influential exchanges globally. His decision to resurface and comment on Bitcoin's price trajectory has intrigued both supporters and critics, highlighting his continued influence in the crypto community.
card
BTC to USD by CoinMarketCap
Bitcoin itself has seen monumental growth since CZ's initial prediction. The cryptocurrency boasts a market capitalization of $1.3 trillion and has established itself as a key asset on the financial market, alongside traditional investments like gold and equities.
Its integration into mainstream finance is underscored by the approval of a spot ETF on the U.S. stock market, broadening its appeal to a wide range of investors, including pension funds.
Binance Shunned from Forbes' Top 20: CZ's Impending Jail Term a Factor?
The global surge in cryptocurrency adoption continues unabated, drawing in a diverse array of investors into the realm of digital assets.
With this escalating demand for cryptocurrencies, there arises a parallel necessity for trustworthy and robust exchanges to facilitate the seamless buying, selling, and trading of these digital currencies.
Forbes Ranked the Top 20 Most Trustworthy Crypto Exchanges in 2024
Forbes' 2024 list underwent an extensive process, spanning several months, to identify the top cryptocurrency exchanges.
The World’s Best Crypto Exchanges And Marketplaces: by @eltrade https://t.co/lEghg5hvYh
— Forbes Crypto (@ForbesCrypto) May 15, 2024
They began by scrutinising 646 exchanges sourced from platforms like CoinMarketCap and CryptoCompare.
A staggering 74% were disqualified due to inadequate assets under custody.
Further vetting involved examining product offerings, trading and traffic volumes, and regulatory backgrounds, if any.
Each exchange on the shortlist was assessed across nine categories, graded on a scale of one to 10.
These scores were then aggregated and weighted according to the percentages specified in the ranking table, yielding a composite final score.
Decentralised exchanges were excluded as they operate without human intervention.
Forbes explained the ranking's methodology:
“In an industry that is largely unregulated and unaudited and in which hacks are common, the most important job for exchanges is to keep tokens safe for investors. Forbes’ methodology reflects this goal. Each exchange had to meet a high regulatory threshold for inclusion, earning at least seven out of 10 possible points."
Using this methodology, the ranking table is as seen below.
Source: Forbes' The World's Best Crypto Exchanges And Marketplaces
In March 2022, Forbes conducted a ranking of crypto exchanges amidst a landscape where CoinGecko listed around 6,500 tokens.
Presently, the crypto market has expanded significantly, with over 13,000 tokens available.
Forbes streamlined their list from 60 companies in 2022 to just 20, prioritising criteria such as compliance, solvency, and security.
Coinbase Emerged the Victor
In the aftermath of significant upheavals, such as the legal proceedings involving industry giants like Sam Bankman-Fried (SBF) and Changpeng Zhao (CZ), the cryptocurrency exchange landscape is evolving towards greater transparency and compliance.
In this shifting terrain, Coinbase, a publicly traded entity known not just for its exchange services but also as a premier cryptocurrency custodian, emerges as a beacon of trustworthiness, spearheading the list of the industry's top 20 exchanges.
Holding 13% of the global supply of bitcoin and ethereum, along with 40% of all crypto assets on exchanges, underscores its reputation for trustworthiness.
Forbes noted in the ranking:
“Among pure crypto exchanges, Coinbase is clearly the favoured custodian for traditional institutions and it has benefited from the new spot bitcoin ETFs, eight of which use it to hold their crypto. At the end of the first quarter bitcoin and ether in custody rose to $219 billion. Retail fees are relatively high, averaging nearly 1.7%. Coinbase is the largest US crypto exchange by trading volume and largest globally by assets held in custody."
Despite regulatory challenges, such as ongoing disputes with the Securities and Exchange Commission (SEC) which considers almost all digital currencies other than bitcoin to be securities, Coinbase maintains a high regulatory score.
While these issues are civil rather than criminal, Coinbase excels in audit quality and enjoys strong institutional investor confidence, mirroring its top position on the 2022 list.
Why is Binance Missing from Forbes' List?
Despite maintaining its status as the largest cryptocurrency exchange globally in terms of daily trading volume, Binance's absence from the 2024 Forbes ranking raises questions.
Source: CoinMarketCap
Forbes cites legal and regulatory issues as the primary reasons for this omission.
The case being: Binance, under the leadership of CZ, faced significant legal challenges in the US, resulting in guilty pleas for violating anti-money laundering laws (AML), engaging in unlicensed money transmission, and breaching sanctions regulations.
As part of the settlement, the exchange agreed to pay $4.3 billion in restitution.
CZ himself acknowledged a failure to implement an effective AML programme at Binance, leading to a fine of $50 million and a four-month prison sentence.
Over the past three years, Binance has faced expulsion from at least 17 countries, including major markets like India, the UK, and Japan.
One key concern contributing to its reputational challenges is its lack of a fixed headquarters, leaving much of its operations without a home regulator.
Why is CZ Still Not in Prison Yet?
Despite receiving a four-month sentence during his hearing on 30 April, CZ has yet to begin serving his prison term due to procedural formalities within the criminal justice system.
While the judge's judgment mandates his surrender for imprisonment as notified by the Probation or Pretrial Services Office, such notification has not been issued.
This delay underscores the protection afforded by the Fifth Amendment of the US Constitution, ensuring due process for all individuals within its jurisdiction, regardless of citizenship status.
This constitutional safeguard, backed by centuries of legal interpretation, guarantees redress for anyone facing deprivation of life, liberty, or property without lawful due process.
In addition, CZ has assembled an impressive legal team comprising seven attorneys from renowned law firms such as Latham & Watkins, Quinn Emanuel Urquhart & Sullivan, and Davis Wright Tremaine.
This formidable ensemble, backed by paralegal and support staff, has diligently explored every legal avenue to delay the commencement of his prison term, affording him ample time for preparation.
However, despite these efforts, CZ's eventual incarceration hinges on notification from the Probation or Pretrial Services Office of the US Bureau of Prisons.
The office is conducting statutory reviews to ensure compliance with CZ's individual circumstances, thereby upholding Constitutional due process.
With this escalating demand for cryptocurrencies, there arises a parallel necessity for trustworthy and robust exchanges to facilitate the seamless buying, selling, and trading of these digital currencies.
Forbes Ranked the Top 20 Most Trustworthy Crypto Exchanges in 2024
Forbes' 2024 list underwent an extensive process, spanning several months, to identify the top cryptocurrency exchanges.
The World’s Best Crypto Exchanges And Marketplaces: by @eltrade https://t.co/lEghg5hvYh
— Forbes Crypto (@ForbesCrypto) May 15, 2024
They began by scrutinising 646 exchanges sourced from platforms like CoinMarketCap and CryptoCompare.
A staggering 74% were disqualified due to inadequate assets under custody.
Further vetting involved examining product offerings, trading and traffic volumes, and regulatory backgrounds, if any.
Each exchange on the shortlist was assessed across nine categories, graded on a scale of one to 10.
These scores were then aggregated and weighted according to the percentages specified in the ranking table, yielding a composite final score.
Decentralised exchanges were excluded as they operate without human intervention.
Forbes explained the ranking's methodology:
“In an industry that is largely unregulated and unaudited and in which hacks are common, the most important job for exchanges is to keep tokens safe for investors. Forbes’ methodology reflects this goal. Each exchange had to meet a high regulatory threshold for inclusion, earning at least seven out of 10 possible points."
Using this methodology, the ranking table is as seen below.
Source: Forbes' The World's Best Crypto Exchanges And Marketplaces
In March 2022, Forbes conducted a ranking of crypto exchanges amidst a landscape where CoinGecko listed around 6,500 tokens.
Presently, the crypto market has expanded significantly, with over 13,000 tokens available.
Forbes streamlined their list from 60 companies in 2022 to just 20, prioritising criteria such as compliance, solvency, and security.
Coinbase Emerged the Victor
In the aftermath of significant upheavals, such as the legal proceedings involving industry giants like Sam Bankman-Fried (SBF) and Changpeng Zhao (CZ), the cryptocurrency exchange landscape is evolving towards greater transparency and compliance.
In this shifting terrain, Coinbase, a publicly traded entity known not just for its exchange services but also as a premier cryptocurrency custodian, emerges as a beacon of trustworthiness, spearheading the list of the industry's top 20 exchanges.
Holding 13% of the global supply of bitcoin and ethereum, along with 40% of all crypto assets on exchanges, underscores its reputation for trustworthiness.
Forbes noted in the ranking:
“Among pure crypto exchanges, Coinbase is clearly the favoured custodian for traditional institutions and it has benefited from the new spot bitcoin ETFs, eight of which use it to hold their crypto. At the end of the first quarter bitcoin and ether in custody rose to $219 billion. Retail fees are relatively high, averaging nearly 1.7%. Coinbase is the largest US crypto exchange by trading volume and largest globally by assets held in custody."
Despite regulatory challenges, such as ongoing disputes with the Securities and Exchange Commission (SEC) which considers almost all digital currencies other than bitcoin to be securities, Coinbase maintains a high regulatory score.
While these issues are civil rather than criminal, Coinbase excels in audit quality and enjoys strong institutional investor confidence, mirroring its top position on the 2022 list.
Why is Binance Missing from Forbes' List?
Despite maintaining its status as the largest cryptocurrency exchange globally in terms of daily trading volume, Binance's absence from the 2024 Forbes ranking raises questions.
Source: CoinMarketCap
Forbes cites legal and regulatory issues as the primary reasons for this omission.
The case being: Binance, under the leadership of CZ, faced significant legal challenges in the US, resulting in guilty pleas for violating anti-money laundering laws (AML), engaging in unlicensed money transmission, and breaching sanctions regulations.
As part of the settlement, the exchange agreed to pay $4.3 billion in restitution.
CZ himself acknowledged a failure to implement an effective AML programme at Binance, leading to a fine of $50 million and a four-month prison sentence.
Over the past three years, Binance has faced expulsion from at least 17 countries, including major markets like India, the UK, and Japan.
One key concern contributing to its reputational challenges is its lack of a fixed headquarters, leaving much of its operations without a home regulator.
Why is CZ Still Not in Prison Yet?
Despite receiving a four-month sentence during his hearing on 30 April, CZ has yet to begin serving his prison term due to procedural formalities within the criminal justice system.
While the judge's judgment mandates his surrender for imprisonment as notified by the Probation or Pretrial Services Office, such notification has not been issued.
This delay underscores the protection afforded by the Fifth Amendment of the US Constitution, ensuring due process for all individuals within its jurisdiction, regardless of citizenship status.
This constitutional safeguard, backed by centuries of legal interpretation, guarantees redress for anyone facing deprivation of life, liberty, or property without lawful due process.
In addition, CZ has assembled an impressive legal team comprising seven attorneys from renowned law firms such as Latham & Watkins, Quinn Emanuel Urquhart & Sullivan, and Davis Wright Tremaine.
This formidable ensemble, backed by paralegal and support staff, has diligently explored every legal avenue to delay the commencement of his prison term, affording him ample time for preparation.
However, despite these efforts, CZ's eventual incarceration hinges on notification from the Probation or Pretrial Services Office of the US Bureau of Prisons.
The office is conducting statutory reviews to ensure compliance with CZ's individual circumstances, thereby upholding Constitutional due process.
Changpeng Zhao’s 2019 Bitcoin Prediction Comes True
The post Changpeng Zhao’s 2019 Bitcoin Prediction Comes True appeared first on Coinpedia Fintech News
Former Binance CEO Changpeng Zhao recently resurfaced on social media, reminding followers of his 5-year-old Bitcoin prediction. Referring to a 2019 post, he predicted significant changes once Bitcoin’s price surpassed $8,000. His forecast appears accurate, with Bitcoin now trading above $66,000 and having touched $74,000. Zhao is serving a four-month prison sentence in the US over a money-laundering case following his resignation as CEO of Binance.
Former Binance CEO Changpeng Zhao recently resurfaced on social media, reminding followers of his 5-year-old Bitcoin prediction. Referring to a 2019 post, he predicted significant changes once Bitcoin’s price surpassed $8,000. His forecast appears accurate, with Bitcoin now trading above $66,000 and having touched $74,000. Zhao is serving a four-month prison sentence in the US over a money-laundering case following his resignation as CEO of Binance.
Binance Founder CZ Is Still Not in Jail, Waiting for Specific Notice About Sentence Time
Key Points:
Binance founder CZ has not yet been jailed as he awaits notification from the Probation or Pretrial Services Office due to procedural requirements and Fifth Amendment protections.
The delay in imprisonment is attributed to statutory reviews being conducted by the Bureau of Prisons to ensure the suitability of the SeaTac facility for Zhao's circumstances.
Zhao's legal team, comprising lawyers from top-tier law firms, has utilized legal avenues to postpone the commencement of his prison term.
According to reports from Protos, Changpeng Zhao (CZ), the founder of Binance, has not yet been incarcerated as he awaits notification from the Probation or Pretrial Services Office.
Binance Founder CZ Awaits Prison Notification Amid Procedural Delays
The Bureau of Prisons is undergoing statutory reviews to determine if a specific cell at the SeaTac Federal Detention Center and Prison in Seattle-Tacoma International Airport is suitable for his individual circumstances. This delay in imprisonment is due to the procedural requirements of the criminal justice system and the protection of due process guaranteed by the Fifth Amendment.
Federal statute 18 U.S.C. § 3585(a) stipulates that a criminal's sentence commences when they are received in custody awaiting transportation to the designated detention facility. The Binance founder CZ received the judgment type where the Probation or Pretrial Services Office is authorized to notify him of his entry date into prison.
Before designating a criminal to prison, the Bureau of Prisons must consider various factors, including the facility's resources, the nature of the offense, the offender's history, any court recommendations, and policy statements from the US Sentencing Commission. This meticulous process ensures adherence to due process rights.
Legal Maneuvering Delays Commencement of Zhao's Prison Term
Unlike straightforward cases where criminals are immediately sent to prison upon sentencing, Zhao's situation involved uncertainties regarding his sentencing outcome. With the assistance of a formidable legal team from prestigious law firms, Zhao's lawyers have utilized legal avenues to delay the commencement of his prison term.
Binance founder CZ will enter prison upon notification from the Probation or Pretrial Services Office, which is currently reviewing the suitability of SeaTac to Zhao's circumstances to prevent any legal challenges regarding due process violations.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Binance founder CZ has not yet been jailed as he awaits notification from the Probation or Pretrial Services Office due to procedural requirements and Fifth Amendment protections.
The delay in imprisonment is attributed to statutory reviews being conducted by the Bureau of Prisons to ensure the suitability of the SeaTac facility for Zhao's circumstances.
Zhao's legal team, comprising lawyers from top-tier law firms, has utilized legal avenues to postpone the commencement of his prison term.
According to reports from Protos, Changpeng Zhao (CZ), the founder of Binance, has not yet been incarcerated as he awaits notification from the Probation or Pretrial Services Office.
Binance Founder CZ Awaits Prison Notification Amid Procedural Delays
The Bureau of Prisons is undergoing statutory reviews to determine if a specific cell at the SeaTac Federal Detention Center and Prison in Seattle-Tacoma International Airport is suitable for his individual circumstances. This delay in imprisonment is due to the procedural requirements of the criminal justice system and the protection of due process guaranteed by the Fifth Amendment.
Federal statute 18 U.S.C. § 3585(a) stipulates that a criminal's sentence commences when they are received in custody awaiting transportation to the designated detention facility. The Binance founder CZ received the judgment type where the Probation or Pretrial Services Office is authorized to notify him of his entry date into prison.
Before designating a criminal to prison, the Bureau of Prisons must consider various factors, including the facility's resources, the nature of the offense, the offender's history, any court recommendations, and policy statements from the US Sentencing Commission. This meticulous process ensures adherence to due process rights.
Legal Maneuvering Delays Commencement of Zhao's Prison Term
Unlike straightforward cases where criminals are immediately sent to prison upon sentencing, Zhao's situation involved uncertainties regarding his sentencing outcome. With the assistance of a formidable legal team from prestigious law firms, Zhao's lawyers have utilized legal avenues to delay the commencement of his prison term.
Binance founder CZ will enter prison upon notification from the Probation or Pretrial Services Office, which is currently reviewing the suitability of SeaTac to Zhao's circumstances to prevent any legal challenges regarding due process violations.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
据 Protos 报道，尽管前币安 CEO 赵长鹏被判处四个月监禁，但由于第五修正案的正当程序保护和刑事司法系统的程序延误以及律师团队的努力，他尚未入狱。根据法官的判决，赵长鹏需等待缓刑或预审服务办公室的通知才能入狱。目前，该办公室正在进行必要的审查工作，以确保入狱安排符合相关法律程序。…
#Binance #CZ #مليونيرا #ETFvsBTC #bitcoin الدول التي بها موطن مليارديرات
المملكة المتحدة10
إجمالي المليارديرات: 55 أغنى شخص: مايكل بلات
9. هونغ كونغ
إجمالي المليارديرات: 67 أغنى شخص: لي كا شينغ
8. كندا
إجمالي المليارديرات: 67 أغنى شخص: ديفيد طومسون وعائلته
7. البرازيل
إجمالي المليارديرات: 69 أغنى شخص: إدواردو سافرين
6. إيطاليا
إجمالي المليارديرات: 73 أغنى شخص: جيوفاني فيريرو
5. روسيا
إجمالي المليارديرات: 120 أغنى شخص: فاجيت ألكبيروف
4. ألمانيا
إجمالي المليارديرات: 132 أغنى شخص: كلاوس مايكل كوهني
3. الهند
إجمالي المليارديرات: 200 أغنى شخص: موكيش أمباني
2. الصين
إجمالي المليارديرات: 406 أغنى شخص: تشونغ شانشان
1. الولايات المتحدة
إجمالي المليارديرات: 813 أغنى شخص: إيلون ماسك
المملكة المتحدة10
إجمالي المليارديرات: 55 أغنى شخص: مايكل بلات
9. هونغ كونغ
إجمالي المليارديرات: 67 أغنى شخص: لي كا شينغ
8. كندا
إجمالي المليارديرات: 67 أغنى شخص: ديفيد طومسون وعائلته
7. البرازيل
إجمالي المليارديرات: 69 أغنى شخص: إدواردو سافرين
6. إيطاليا
إجمالي المليارديرات: 73 أغنى شخص: جيوفاني فيريرو
5. روسيا
إجمالي المليارديرات: 120 أغنى شخص: فاجيت ألكبيروف
4. ألمانيا
إجمالي المليارديرات: 132 أغنى شخص: كلاوس مايكل كوهني
3. الهند
إجمالي المليارديرات: 200 أغنى شخص: موكيش أمباني
2. الصين
إجمالي المليارديرات: 406 أغنى شخص: تشونغ شانشان
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Former Binance CEO CZ Teases Writing a Book During His Prison Term
Former Binance CEO Changpeng Zhao (CZ) plans to write a book during his four-month prison sentence.
CZ was sentenced to prison for money laundering violations and resigned as CEO of Binance, which agreed to pay a $4.3 billion fine.
CZ is launching “Giggle Academy,” an educational initiative for underprivileged children focusing on finance and blockchain.
Former Binance CEO Changpeng Zhao (CZ) has hinted at the potential of authoring a book. In a post on the X social media network, CZ joked that he would utilize his approaching “quiet time” to focus on writing. This declaration follows his recent legal issues, which ended in a four-month prison sentence.
I got some "quiet time" coming up. Will use that to write something.
— CZ BNB (@cz_binance) May 12, 2024
CZ’s mention of writing a book has sparked widespread curiosity, as he is a key person in the cryptocurrency community. The book might contain his experiences and thoughts as the leader of one of the world’s top cryptocurrency exchanges.
Legal Challenges and Resignation
In April, CZ was sentenced to four months in prison, making him the richest person ever imprisoned in the United States. This punishment followed his November resignation as CEO of Binance when he pleaded guilty to money laundering charges. As part of the resolution, the business agreed to pay a significant $4.3 billion fine.
Despite these problems, CZ has stated a continued interest in cryptocurrency and confirmed that he will continue investing. His decision to leave Binance does not mark a departure from the industry he helped develop.
In addition to his book plans, CZ has mentioned a new project called “Giggle Academy.” This educational effort intends to teach impoverished youngsters about finance and blockchain in addition to traditional courses like mathematics.
CZ’s possible book and instructional endeavors demonstrate his continued influence and interest in the financial and cryptocurrency industries despite personal and professional setbacks.
Read Also:
Binance Founder CZ Shows Gratitude to Supporters After Prison Sentence
Binance Founder CZ Sentenced 4 Months in Prison by US Court, Despite This Crypto Community Supports the Legend
Sam Bankman-Fried Fated Prison Sentence Reveal Set for March 28, 2024
Binance Founder CZ’s Sentencing Postponed to April 30
Binance Makes Guinness Book of World Records, Say ‘CZ’
The post Former Binance CEO CZ Teases Writing a Book During His Prison Term appeared first on Crypto News Land.
CZ was sentenced to prison for money laundering violations and resigned as CEO of Binance, which agreed to pay a $4.3 billion fine.
CZ is launching “Giggle Academy,” an educational initiative for underprivileged children focusing on finance and blockchain.
Former Binance CEO Changpeng Zhao (CZ) has hinted at the potential of authoring a book. In a post on the X social media network, CZ joked that he would utilize his approaching “quiet time” to focus on writing. This declaration follows his recent legal issues, which ended in a four-month prison sentence.
I got some "quiet time" coming up. Will use that to write something.
— CZ BNB (@cz_binance) May 12, 2024
CZ’s mention of writing a book has sparked widespread curiosity, as he is a key person in the cryptocurrency community. The book might contain his experiences and thoughts as the leader of one of the world’s top cryptocurrency exchanges.
Legal Challenges and Resignation
In April, CZ was sentenced to four months in prison, making him the richest person ever imprisoned in the United States. This punishment followed his November resignation as CEO of Binance when he pleaded guilty to money laundering charges. As part of the resolution, the business agreed to pay a significant $4.3 billion fine.
Despite these problems, CZ has stated a continued interest in cryptocurrency and confirmed that he will continue investing. His decision to leave Binance does not mark a departure from the industry he helped develop.
In addition to his book plans, CZ has mentioned a new project called “Giggle Academy.” This educational effort intends to teach impoverished youngsters about finance and blockchain in addition to traditional courses like mathematics.
CZ’s possible book and instructional endeavors demonstrate his continued influence and interest in the financial and cryptocurrency industries despite personal and professional setbacks.
Read Also:
Binance Founder CZ Shows Gratitude to Supporters After Prison Sentence
Binance Founder CZ Sentenced 4 Months in Prison by US Court, Despite This Crypto Community Supports the Legend
Sam Bankman-Fried Fated Prison Sentence Reveal Set for March 28, 2024
Binance Founder CZ’s Sentencing Postponed to April 30
Binance Makes Guinness Book of World Records, Say ‘CZ’
The post Former Binance CEO CZ Teases Writing a Book During His Prison Term appeared first on Crypto News Land.
Changpeng Zhao Makes History as Wealthiest US Prisoner with $33B Fortune
Despite facing a four-month prison sentence after pleading guilty to enabling money laundering at his cryptocurrency exchange, former Binance CEO Changpeng Zhao's (CZ) substantial wealth is expected to remain intact and possibly even grow.
The sentencing in a Seattle federal court marked a departure from the three-year term sought by federal prosecutors, with the defence requesting five months of probation.
Although sentencing guidelines suggested a longer prison term of 12 to 18 months, CZ's sentence reflects a mitigated outcome.
Wealthiest US Inmate: Embarrassing or Memorable New Moniker for CZ?
Seattle Judge Richard Jones opted for a four-month prison sentence, a deviation from the lengthier term suggested by sentencing guidelines.
Nevertheless, CZ, despite his time behind bars, will secure a place in history as the wealthiest individual to serve time in a US federal prison, with his ownership of Binance and an estimated $33 billion personal fortune according to Forbes' Real-Time World;s Billionaires list.
At the time of writing, he ranks 50th.
Source: Forbes Real-Time Billionaires List
With Binance's business poised to thrive amidst the current cryptocurrency bull market, his wealth is anticipated to further expand.
He is poised to hold the title of the wealthiest individual ever to serve time in prison.
Yesha Yadav, law professor and associate dean at Vanderbilt University, noted:
"CZ will now be one of the wealthiest people in prison."
🧑⚖️ #Binance founder Changpeng Zhao was sentenced to four months in prison. Binance has been fined $4 billion. In April (4th month) of 2oo4
CZ has been telling us this whole time. 🖖
With a net worth of $33B, CZ will officially be the richest man ever sent to prison (sorry SBF) pic.twitter.com/i6zxLFdYzo
— Trading Fixer (@SherazSherry8) May 1, 2024
Although he relinquished his CEO title as part of his agreement with the government, CZ’s influence on the company persists, evident in the composition of its board of directors, which is predominantly comprised of his close associates, and the significant role played by Yi He, the mother of his three children in its operations.
CZ's Wealth Unaffected & Likely to Rise
Even with CZ facing a prison sentence, industry experts and legal professionals interviewed by CNBC suggest that his vast personal wealth will remain largely untouched and, if anything, could even grow.
According to Tre Lovell, a corporate law attorney based in Los Angeles, the government can only claim restitution or fines, not CZ's entire assets or wealth.
Neama Rahmani, a former federal prosecutor, concurs, emphasizing that CZ's personal fortune would not be significantly impacted by his sentence:
"Because Zhao and the government came to an agreement, the government didn't get a judgment or restitution order against Zhao and do discovery into his assets. He’ll have significant wealth when he is released from prison."
But why does that ring true to CZ but not for another fallen crypto king who is serving 25 years in prison?
CZ’s case stands out notably because he pleaded guilty to a single count of violating the United States (US) Bank Secrecy Act (BSA).
This positions him as a first-time offender, leading to a settlement with federal authorities.
Under this agreement, he stepped down as CEO but retained his stake in the company without having his assets frozen.
Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission (CFTC), explained:
"Typically, personal assets that are not directly linked to the criminal activity might remain unaffected. His assets could also be managed on his behalf while he is incarcerated."
This contrasts sharply with the trajectory of Sam Bankman-Fried (SBF), the former CEO and founder of FTX.
SBF's crypto empire collapsed into bankruptcy in 2022, wiping out his wealth.
During the peak of the early 2022 crypto frenzy, his net worth soared to $25 billion, only to plummet to zero by the time he entered prison.
Samuel Bankman-Fried (SBF) of FTX fame, aged 30 years & one of the super star of the world of cryptos, had net worth of $26 billion in October 2022. By 11 Nov, his net worth became Zero. He had donated
$40 million during the 2022 US midterms elections to democrats. pic.twitter.com/LteUfWmkO3
— Aftab Alam آفتاب عالم आफ़ताब आलम (@aftabcalm) November 13, 2022
Joshua de Vos, research lead at CCData, stated:
“In relation to CZ's personal wealth ... he would still be able to retain his share in Binance, as well as maintain his crypto holdings which also contribute an unknown, yet material, amount to his overall wealth and net worth. Since there is no misappropriation or bankruptcy proceedings, it is highly unlikely that CZ would see his wealth reduced to zero as was the case with SBF."
In contrast, SBF faced accusations of diverting funds from FTX customers to fuel his extravagant lifestyle and high-risk investments at his struggling hedge fund.
He was convicted on seven counts of financial fraud, encompassing wire fraud, securities fraud, commodities fraud, and money laundering.
Additionally, CZ's sentencing was considerably milder compared to SBF's.
He kept a comparatively low profile for years, which made him much less of a public target.
He also proactively negotiated his guilty plea instead of opting to try to beat the government in one of the most high-profile trials of the last few years.
While CZ faces a four-month prison term for BSA violations connected to Binance, SBF received a 25-year sentence for offenses related to his exchange, including allegations of fraud and mishandling customer funds.
SBF almost certainly could have negotiated a significantly shorter sentence had he not decided to go head-to-head with the feds.
Crypto Rally Sparks Surge in CZ's Financial Standing
Industry analysts predict that CZ's wealth will likely continue its upward trajectory, fuelled by the ongoing surge in cryptocurrency prices, which typically drives increased trading activity on Binance and contributes to his personal fortune.
Despite facing a series of legal challenges, including a lawsuit from the Department of Justice and ongoing litigation with the Securities and Exchange Commission (SEC), his financial outlook remains robust.
The SEC's allegations against Binance for multiple unregistered offerings and sales of crypto asset securities add to the legal complexities surrounding CZ and his company.
The outcome of this case is yet to be determined, prolonging the uncertainty.
While Forbes' World's Billionaires list provides one perspective on CZ's net worth based on stock prices and exchange rates, Bloomberg's Billionaires Index paints a more lucrative picture, valuing his wealth at $38.1 billion at the time of writing and ranking him 39.
Source: Bloomberg Billionaires Index
With reports suggesting that CZ holds approximately 90% ownership in Binance, his substantial fortune is primarily tied to his equity stake in the company.
Binance founder @cz_binance set to keep on growing his $33 billion fortune even as he heads to prison for four months. Zhao's controlling stake in Binance (reportedly 90%) means he will be one of the wealthiest people in prison today: https://t.co/6oipZIs31H w/ @Ryan_Browne_ pic.twitter.com/t2USB3CM3z
— MacKenzie Sigalos (@KenzieSigalos) April 30, 2024
Binance Remains a Dominant Force in the Industry
Binance continues to assert its dominance in both spot and derivatives cryptocurrency markets, maintaining its position as a market leader.
With an impressive influx of over 40 million new users in 2023, marking a 30% increase from the previous year, the exchange's user base continues to expand rapidly.
Accumulated holdings on the platform now exceed $100 billion, underscoring its significance in the crypto sphere.
Estimated to have generated $9.8 billion in annual revenue through March, as per Bloomberg projections, Binance also facilitated a staggering $18.1 trillion in trading volume in 2023, according to data from CCData.
Despite experiencing a decline in market share to 41.6% following CZ’s resignation as CEO in November 2023, Binance remains a dominant force in the industry.
While CZ has acknowledged personal investments in bitcoin and Binance's native BNB token, the precise value of these holdings remains undisclosed.
At present, BNB has surged by over 80% this year, reaching $596.26 at the time of writing, showcasing the continued growth and potential of the platform.
Lucas Kiely, the Chief Investment Officer at digital wealth platform Yield App, emphasized that CZ's substantial ownership in the world's leading cryptocurrency exchange by trading volume could potentially position him to capitalise on the broader expansion of the cryptocurrency market.
According to Kiely, the recent approval of a spot bitcoin exchange-traded fund (ETF) in the US has reignited interest in the cryptocurrency market, catalysing a surge of new institutional investment.
This development is expected to significantly benefit Binance and its operations.
He added:
"Such developments could contribute to the growth of Binance and, by extension, CZ's wealth."
Andy Goldin, global head of data and analytics at Binance, expressed in an interview in March:
"It's really the ETFs and whatnot that are helping drive a lot of this activity. It's really fueled by more institutional trading activity at this point."
The sentencing in a Seattle federal court marked a departure from the three-year term sought by federal prosecutors, with the defence requesting five months of probation.
Although sentencing guidelines suggested a longer prison term of 12 to 18 months, CZ's sentence reflects a mitigated outcome.
Wealthiest US Inmate: Embarrassing or Memorable New Moniker for CZ?
Seattle Judge Richard Jones opted for a four-month prison sentence, a deviation from the lengthier term suggested by sentencing guidelines.
Nevertheless, CZ, despite his time behind bars, will secure a place in history as the wealthiest individual to serve time in a US federal prison, with his ownership of Binance and an estimated $33 billion personal fortune according to Forbes' Real-Time World;s Billionaires list.
At the time of writing, he ranks 50th.
Source: Forbes Real-Time Billionaires List
With Binance's business poised to thrive amidst the current cryptocurrency bull market, his wealth is anticipated to further expand.
He is poised to hold the title of the wealthiest individual ever to serve time in prison.
Yesha Yadav, law professor and associate dean at Vanderbilt University, noted:
"CZ will now be one of the wealthiest people in prison."
🧑⚖️ #Binance founder Changpeng Zhao was sentenced to four months in prison. Binance has been fined $4 billion. In April (4th month) of 2oo4
CZ has been telling us this whole time. 🖖
With a net worth of $33B, CZ will officially be the richest man ever sent to prison (sorry SBF) pic.twitter.com/i6zxLFdYzo
— Trading Fixer (@SherazSherry8) May 1, 2024
Although he relinquished his CEO title as part of his agreement with the government, CZ’s influence on the company persists, evident in the composition of its board of directors, which is predominantly comprised of his close associates, and the significant role played by Yi He, the mother of his three children in its operations.
CZ's Wealth Unaffected & Likely to Rise
Even with CZ facing a prison sentence, industry experts and legal professionals interviewed by CNBC suggest that his vast personal wealth will remain largely untouched and, if anything, could even grow.
According to Tre Lovell, a corporate law attorney based in Los Angeles, the government can only claim restitution or fines, not CZ's entire assets or wealth.
Neama Rahmani, a former federal prosecutor, concurs, emphasizing that CZ's personal fortune would not be significantly impacted by his sentence:
"Because Zhao and the government came to an agreement, the government didn't get a judgment or restitution order against Zhao and do discovery into his assets. He’ll have significant wealth when he is released from prison."
But why does that ring true to CZ but not for another fallen crypto king who is serving 25 years in prison?
CZ’s case stands out notably because he pleaded guilty to a single count of violating the United States (US) Bank Secrecy Act (BSA).
This positions him as a first-time offender, leading to a settlement with federal authorities.
Under this agreement, he stepped down as CEO but retained his stake in the company without having his assets frozen.
Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission (CFTC), explained:
"Typically, personal assets that are not directly linked to the criminal activity might remain unaffected. His assets could also be managed on his behalf while he is incarcerated."
This contrasts sharply with the trajectory of Sam Bankman-Fried (SBF), the former CEO and founder of FTX.
SBF's crypto empire collapsed into bankruptcy in 2022, wiping out his wealth.
During the peak of the early 2022 crypto frenzy, his net worth soared to $25 billion, only to plummet to zero by the time he entered prison.
Samuel Bankman-Fried (SBF) of FTX fame, aged 30 years & one of the super star of the world of cryptos, had net worth of $26 billion in October 2022. By 11 Nov, his net worth became Zero. He had donated
$40 million during the 2022 US midterms elections to democrats. pic.twitter.com/LteUfWmkO3
— Aftab Alam آفتاب عالم आफ़ताब आलम (@aftabcalm) November 13, 2022
Joshua de Vos, research lead at CCData, stated:
“In relation to CZ's personal wealth ... he would still be able to retain his share in Binance, as well as maintain his crypto holdings which also contribute an unknown, yet material, amount to his overall wealth and net worth. Since there is no misappropriation or bankruptcy proceedings, it is highly unlikely that CZ would see his wealth reduced to zero as was the case with SBF."
In contrast, SBF faced accusations of diverting funds from FTX customers to fuel his extravagant lifestyle and high-risk investments at his struggling hedge fund.
He was convicted on seven counts of financial fraud, encompassing wire fraud, securities fraud, commodities fraud, and money laundering.
Additionally, CZ's sentencing was considerably milder compared to SBF's.
He kept a comparatively low profile for years, which made him much less of a public target.
He also proactively negotiated his guilty plea instead of opting to try to beat the government in one of the most high-profile trials of the last few years.
While CZ faces a four-month prison term for BSA violations connected to Binance, SBF received a 25-year sentence for offenses related to his exchange, including allegations of fraud and mishandling customer funds.
SBF almost certainly could have negotiated a significantly shorter sentence had he not decided to go head-to-head with the feds.
Crypto Rally Sparks Surge in CZ's Financial Standing
Industry analysts predict that CZ's wealth will likely continue its upward trajectory, fuelled by the ongoing surge in cryptocurrency prices, which typically drives increased trading activity on Binance and contributes to his personal fortune.
Despite facing a series of legal challenges, including a lawsuit from the Department of Justice and ongoing litigation with the Securities and Exchange Commission (SEC), his financial outlook remains robust.
The SEC's allegations against Binance for multiple unregistered offerings and sales of crypto asset securities add to the legal complexities surrounding CZ and his company.
The outcome of this case is yet to be determined, prolonging the uncertainty.
While Forbes' World's Billionaires list provides one perspective on CZ's net worth based on stock prices and exchange rates, Bloomberg's Billionaires Index paints a more lucrative picture, valuing his wealth at $38.1 billion at the time of writing and ranking him 39.
Source: Bloomberg Billionaires Index
With reports suggesting that CZ holds approximately 90% ownership in Binance, his substantial fortune is primarily tied to his equity stake in the company.
Binance founder @cz_binance set to keep on growing his $33 billion fortune even as he heads to prison for four months. Zhao's controlling stake in Binance (reportedly 90%) means he will be one of the wealthiest people in prison today: https://t.co/6oipZIs31H w/ @Ryan_Browne_ pic.twitter.com/t2USB3CM3z
— MacKenzie Sigalos (@KenzieSigalos) April 30, 2024
Binance Remains a Dominant Force in the Industry
Binance continues to assert its dominance in both spot and derivatives cryptocurrency markets, maintaining its position as a market leader.
With an impressive influx of over 40 million new users in 2023, marking a 30% increase from the previous year, the exchange's user base continues to expand rapidly.
Accumulated holdings on the platform now exceed $100 billion, underscoring its significance in the crypto sphere.
Estimated to have generated $9.8 billion in annual revenue through March, as per Bloomberg projections, Binance also facilitated a staggering $18.1 trillion in trading volume in 2023, according to data from CCData.
Despite experiencing a decline in market share to 41.6% following CZ’s resignation as CEO in November 2023, Binance remains a dominant force in the industry.
While CZ has acknowledged personal investments in bitcoin and Binance's native BNB token, the precise value of these holdings remains undisclosed.
At present, BNB has surged by over 80% this year, reaching $596.26 at the time of writing, showcasing the continued growth and potential of the platform.
Lucas Kiely, the Chief Investment Officer at digital wealth platform Yield App, emphasized that CZ's substantial ownership in the world's leading cryptocurrency exchange by trading volume could potentially position him to capitalise on the broader expansion of the cryptocurrency market.
According to Kiely, the recent approval of a spot bitcoin exchange-traded fund (ETF) in the US has reignited interest in the cryptocurrency market, catalysing a surge of new institutional investment.
This development is expected to significantly benefit Binance and its operations.
He added:
"Such developments could contribute to the growth of Binance and, by extension, CZ's wealth."
Andy Goldin, global head of data and analytics at Binance, expressed in an interview in March:
"It's really the ETFs and whatnot that are helping drive a lot of this activity. It's really fueled by more institutional trading activity at this point."
Binance Trading Volumes Spike 72% Despite Market Decline
In April, derivatives trading volume on the largest exchanges decreased by 1.4% month-on-month.
However, futures trading volumes on Binance, the largest centralized exchange (CEX), rose more than 72% in April compared to March.
According to the Wu Blockchain team, the sharp increase in trading volume is due to Binance introducing a time-limited fee discount for USDC perpetual contracts, which led to a rise in trading volume for perpetual agreements.
However, excluding this, the total trading volume in April decreased by 26.6% compared to the previous month. The three largest declines in futures trading volumes were the exchanges Bitget at 16.1%, Crypto.com at 15.6%, and HTX at a 13.4% decline.
Source: Wublockchain
Spot trading volume fell even further, down nearly 38% month-on-month. Of all exchanges, Gate was the only one to see an uptick in activity at 13.7%. The exchanges that took the biggest hits were Kucoin at 70.8%, Upbit with a 57.5% decline, and Bitfinex with a 47.7% decrease.
In early April, Binance Futures introduced a trading fee discount for all USDC-margined perpetual contracts. During the promotion, all Binance users received discounts when trading any USDC-margined perpetual contracts.
The promotion began shortly after Binance founder Changpeng Zhao was sentenced to four months in prison due to violating the Bank Secrecy Act, and the exchange was fined $4.4 billion as a result.
Zhao pleaded guilty and made a deal with the investigation, resigning as CEO of Binance and agreeing to pay a $50 million fine.
You might also like: Too harsh or too lenient? Changpeng Zhao’s sentence divides opinion
However, futures trading volumes on Binance, the largest centralized exchange (CEX), rose more than 72% in April compared to March.
According to the Wu Blockchain team, the sharp increase in trading volume is due to Binance introducing a time-limited fee discount for USDC perpetual contracts, which led to a rise in trading volume for perpetual agreements.
However, excluding this, the total trading volume in April decreased by 26.6% compared to the previous month. The three largest declines in futures trading volumes were the exchanges Bitget at 16.1%, Crypto.com at 15.6%, and HTX at a 13.4% decline.
Source: Wublockchain
Spot trading volume fell even further, down nearly 38% month-on-month. Of all exchanges, Gate was the only one to see an uptick in activity at 13.7%. The exchanges that took the biggest hits were Kucoin at 70.8%, Upbit with a 57.5% decline, and Bitfinex with a 47.7% decrease.
In early April, Binance Futures introduced a trading fee discount for all USDC-margined perpetual contracts. During the promotion, all Binance users received discounts when trading any USDC-margined perpetual contracts.
The promotion began shortly after Binance founder Changpeng Zhao was sentenced to four months in prison due to violating the Bank Secrecy Act, and the exchange was fined $4.4 billion as a result.
Zhao pleaded guilty and made a deal with the investigation, resigning as CEO of Binance and agreeing to pay a $50 million fine.
You might also like: Too harsh or too lenient? Changpeng Zhao’s sentence divides opinion
Binance Founder CZ Hints At Writing His Own Book Amid Legal Troubles
The post Binance Founder CZ Hints at Writing His Own Book Amid Legal Troubles appeared first on Coinpedia Fintech News
Former Binance CEO Changpeng Zhao (CZ) hints at writing a book amidst legal woes, suggesting it during a recent social media post. CZ, who faces a four-month prison sentence and a $4.3 billion fine for money laundering violations, jests about using upcoming “quiet time” for writing. In spite of stepping down from Binance, CZ confirms that his involvement continues in crypto investments and teases an educational initiative, “Giggle Academy,” targeting the underprivileged youth. The step follows a trend that is set by other disgraced crypto figures such as Sam Bankman-Fried.
Former Binance CEO Changpeng Zhao (CZ) hints at writing a book amidst legal woes, suggesting it during a recent social media post. CZ, who faces a four-month prison sentence and a $4.3 billion fine for money laundering violations, jests about using upcoming “quiet time” for writing. In spite of stepping down from Binance, CZ confirms that his involvement continues in crypto investments and teases an educational initiative, “Giggle Academy,” targeting the underprivileged youth. The step follows a trend that is set by other disgraced crypto figures such as Sam Bankman-Fried.
Forensic Risk Alliance Appointed to Monitor Binance Compliance After $4.3 Billion Plea Deal
The U.S. Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) to monitor cryptocurrency exchange Binance’s compliance with regulatory standards.
This follows Binance’s November 2023 plea deal wherein it admitted to charges of money laundering and other federal offenses, resulting in a $4.3 billion fine.
FRA’s three-year engagement will involve scrutinizing Binance‘s internal records, premises, and employee interactions to keep the DOJ informed of its compliance status, a Bloomberg report revealed on May 10.
Originally, the law firm Sullivan & Cromwell was considered for the monitoring contract due to their prominence in the sector.
However, their previous association with FTX, another crypto exchange that went bankrupt, influenced the DOJ’s decision to opt for FRA instead.
This decision came amid allegations against Sullivan & Cromwell for their involvement in FTX Group’s fraudulent activities, as reported by Cointelegraph on February 17.
READ MORE: Toncoin Surges Ahead of Notcoin Game Launch, Outshines Broader Crypto Market with Robust Growth
The firm allegedly had prior knowledge of deceitful practices at FTX that led to the loss of client funds, as stated by FTX creditors in a class-action lawsuit.
Despite these controversies, Sullivan & Cromwell is expected to secure a separate five-year monitoring contract for Binance under the auspices of the Treasury Department’s Financial Crimes Enforcement Network.
In related news, Binance’s former CEO, Changpeng “CZ” Zhao, was sentenced to four months in prison on April 30.
The sentence was for failing to implement an effective Anti-Money Laundering program at the exchange.
Although prosecutors sought a three-year term, the judge mitigated the sentence, citing a lack of evidence that Zhao was directly aware of specific illicit activities within Binance.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
This follows Binance’s November 2023 plea deal wherein it admitted to charges of money laundering and other federal offenses, resulting in a $4.3 billion fine.
FRA’s three-year engagement will involve scrutinizing Binance‘s internal records, premises, and employee interactions to keep the DOJ informed of its compliance status, a Bloomberg report revealed on May 10.
Originally, the law firm Sullivan & Cromwell was considered for the monitoring contract due to their prominence in the sector.
However, their previous association with FTX, another crypto exchange that went bankrupt, influenced the DOJ’s decision to opt for FRA instead.
This decision came amid allegations against Sullivan & Cromwell for their involvement in FTX Group’s fraudulent activities, as reported by Cointelegraph on February 17.
READ MORE: Toncoin Surges Ahead of Notcoin Game Launch, Outshines Broader Crypto Market with Robust Growth
The firm allegedly had prior knowledge of deceitful practices at FTX that led to the loss of client funds, as stated by FTX creditors in a class-action lawsuit.
Despite these controversies, Sullivan & Cromwell is expected to secure a separate five-year monitoring contract for Binance under the auspices of the Treasury Department’s Financial Crimes Enforcement Network.
In related news, Binance’s former CEO, Changpeng “CZ” Zhao, was sentenced to four months in prison on April 30.
The sentence was for failing to implement an effective Anti-Money Laundering program at the exchange.
Although prosecutors sought a three-year term, the judge mitigated the sentence, citing a lack of evidence that Zhao was directly aware of specific illicit activities within Binance.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Binance Founder CZ Teasing His Own Book
Former Binance CEO Changpeng Zhao has suggested that he might write his own book in a recent post on the X social media network.
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CZ jokingly said that he had some "quiet time" coming up, and he would use it for writing something.
The Binance founder said he was going to give his own book a try since he would have nothing else to do.
As reported by U.Today, CZ was sentenced to four months behind bars in April. He became the richest person ever to be incarcerated in the U.S. The prosecutors wanted the controversial 47-year-old entrepreneur to serve three years behind bars.
CZ pleaded guilty to money laundering violations back in November while resigning as the CEO of Binance. The cryptocurrency giant also agreed to fork out a massive $4.3 billion fine.
After stepping down from his position, CZ also teased a new education-focused project called "Giggle Academy." The non-revenue project would specifically target underprivileged kids, teaching them about finance and blockchain on top of some regular subjects like mathematics.
As reported by U.Today, CZ has also confirmed that he would remain a cryptocurrency investor despite stepping away from Binance.
Meanwhile, Sam Bankman-Fried, another disgraced cryptocurrency founder, already has a book about him. The story of the former FTX boss, who was sentenced to 25 years behind bars last year, has been told in Michael Lewis's "Going Infinite: The Rise and Fall of a New Tycoon." Lewis is best known for his book "The Big Short," which inspired the hit movie of the same name.
card
CZ jokingly said that he had some "quiet time" coming up, and he would use it for writing something.
The Binance founder said he was going to give his own book a try since he would have nothing else to do.
As reported by U.Today, CZ was sentenced to four months behind bars in April. He became the richest person ever to be incarcerated in the U.S. The prosecutors wanted the controversial 47-year-old entrepreneur to serve three years behind bars.
CZ pleaded guilty to money laundering violations back in November while resigning as the CEO of Binance. The cryptocurrency giant also agreed to fork out a massive $4.3 billion fine.
After stepping down from his position, CZ also teased a new education-focused project called "Giggle Academy." The non-revenue project would specifically target underprivileged kids, teaching them about finance and blockchain on top of some regular subjects like mathematics.
As reported by U.Today, CZ has also confirmed that he would remain a cryptocurrency investor despite stepping away from Binance.
Meanwhile, Sam Bankman-Fried, another disgraced cryptocurrency founder, already has a book about him. The story of the former FTX boss, who was sentenced to 25 years behind bars last year, has been told in Michael Lewis's "Going Infinite: The Rise and Fall of a New Tycoon." Lewis is best known for his book "The Big Short," which inspired the hit movie of the same name.
Sam Bankman-Fried and Changpeng Zhao: Two of the Biggest Crypto Titans Are Sentenced | Opinion
Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.
This is Part One of a three-part series interview with William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX and Tether, conducted by Selva Ozelli exclusively for crypto.news. Part One is about Sam Bankman-Fried’s and Changpeng Zhao’s prison sentences. Part Two is about cryptocurrency and banking. Part Three is about the future of NFTs.
You might also like: CZ sentenced and SBF’s deal: April’s crypto crime round-up
1) For the benefit of crypto.news readers, please tell us about your career path that led you to becoming a successful technology-focused venture capitalist.
After graduating from the University of Southern California with a degree in accounting and an MBA with distinction from Harvard Business School, where I was appointed a Kauffman Fellow, I worked for Arthur Andersen as a Senior Consultant with their Financial Services Group (“Andersen”). At Andersen, I assisted banks and S&Ls in their asset securitization and risk segmentation efforts. I also advised Japanese banks on their US market entry strategies.
After Andersen, I spent seven years in business planning and new venture roles at The Walt Disney Company (Disney) the world’s largest consumer products licensor. My tenure at Disney included finance and operational roles at Euro Disney, the Disney Store retail chain, and Disney Consumer Products. I also oversaw strategic planning and financial operations for Disney Licensing.
After Disney, my career as a technology-focused venture capitalist began when I became the Managing Director at Idealab! Capital Partners (“ICP”), the world’s first consumer Internet venture capital firm that was an early investor in some of the leading Web1 era companies including PayPal, Netzero, MP3.com, and Goto.com. I later co-founded Clearstone Venture Partners, a $700M early-stage focused venture capital firm where I concentrated my investments on communications and consumer technology companies. And I also co-founded and co-managed Crypto Currency Partners, a blockchain equity investment fund where I incubated and invested in more than 30 Bitcoin, blockchain, and cryptocurrency-related investments with early notable investments in Coinbase, Kraken, Bitfury, Authy, ChangeTip, and Circle.
I co-developed the first crypto derivative used to trade pre-release Ethereum. I also co-founded many other transformative crypto companies, including Tether, the first fiat-backed stablecoin and the world’s most traded cryptocurrency, and GoCoin, a pioneering crypto payments processor. I co-founded WAX, a blockchain built for video game and NFT virtual item trading.
I was also an early investor in PayPal, and highly doubt the payments giant will bring much innovation to the stablecoin space.
2) Please tell us about your thoughts concerning Sam Bankman-Fried’s 25-year prison sentence. The former FTX CEO was found guilty of six counts of fraud and one count of money laundering.
Sam Bankman-Fried swiftly fell from the top three crypto titan spots with a personal net worth once exceeding $26 billion after CoinDesk unveiled a faulty Alameda balance sheet in November 2022. This, in turn, resulted in industry-wide panic and concern about FTX, a centralized cryptocurrency exchange, and its liquidity. FTX traded in highly leveraged spots, derivatives, options, and products.
As the story unraveled, we learned that FTX’s losses were much, much bigger than many originally thought: The executives behind the now-bankrupt FTX and Alameda stole over $10 billion in customer funds during 2021, a crypto and NFT bull market. Sam Bankman-Fried was found guilty of fraud for stealing at least $10 billion from customers and investors , and in March 2024, he was sentenced to 25 years in prison and ordered to pay $11 billion in fines. Sam Bankman-Fried has appealed his prison sentence.
I would like to touch upon multiple factors that might have contributed to Sam Bankman-Fried’s fraud. Sam is a Massachusetts Institute of Technology (MIT) graduate with a degree in physics and a minor in mathematics; he is a former Jane Street Capital international exchange-traded funds (ETFs) trader. He had slim to non-work experience in crypto, blockchain or derivatives when he founded both FTX and the crypto trading company Alameda Research in 2018. I would like to point out that ETFs are not derivatives; they are investment funds that were only approved by the Securities Exchange Commission (SEC) to invest in BTC at the beginning of this year. Therefore, SBF was ill-equipped to manage a highly leveraged crypto exchange and a hedge fund, which declared Chapter 11 bankruptcy on November 11, 2022, marking one of the biggest financial frauds in American history. The failure of FTX shook the volatile crypto market, which lost billions at the time, falling below a $1 trillion valuation.
SBF’s quick rise to fame in the crypto industry was fueled by the media, influencers, and celebrity spokespeople who made him into this investment genius, likening him to JP Morgan and Warren Buffet, who dressed like a beach bum with unwieldy hair. You could say that mainstream media influencers were complicit in SBF’s fraud, providing him with extensive coverage even post-FTX bankruptcy. Think about it: Michael Lewis’s book, “Going Infinite: The Rise and Fall of a New Tycoon,” was released on October 3, 2023, the same day the criminal trial against Sam Bankman-Fried began in federal Manhattan court.
In June of 2023, dozens of lawsuits against Sam Bankman-Fried, his colleagues, FTX investors, and celebrity spokespeople, influencers were combined into one legal proceeding, with many more lawsuits still waiting to be filed. Some of these class action suits are being settled. And Sam Bankman-Fried has agreed to help FTX customers go after celebrity promoters and influencers by flipping.
But investors of FTX were also complicit in Sam Bankman-Fried’s fraud. These FTX investors included Binance and the best of the best venture capital firms such as NEA, IVP, Third Point Ventures, Tiger Global, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Temasek, Thoma Bravo, Paradigm Operations, and others. These investors must not have done any due diligence on the financial statements of FTX and Alameda Research, which were likely prepared on “Quick Books.”
3) The investor’s role in FTX’s fraud has not been addressed until now, and I am glad you are speaking about this. In February 2023, Robbins Geller, a well-known class action law firm, filed a first-of-its-kind lawsuit against venture capital firms that backed FTX.
These venture capital firms employ young, untrained people who know nothing about crypto, derivatives, financial risk, blockchain, or who Satoshi Nakamoto is—last month, U.K. Judge James Mellor decided that Craig Steven Wright apparently is not Satoshi Nakamoto—as the industry is very young. These young, untrained venture capitalists who can’t even read a financial statement were impressed with Sam Bankman-Fried based on the intensely orchestrated media hype about him.
For example, I read that when venture capitalists at Sequoia Capital, the legendary firm that funded Apple, Google, and Instagram, met Sam Bankman-Fried, he did not so much to talk about the technology or the financial statement risk exposure of his crypto exchange, FTX, or about his hedge fund, Alameda Research. What SBF talked about was bananas—the yellow fruit. Apparently, Sam Bankman-Fried said things like, “I want FTX to be a place where you can do anything you want with your next dollar. You can buy Bitcoin. You can send money in whatever currency to any friend anywhere in the world. You can buy a banana. You can do anything you want with your money from inside FTX.” Frankly, if I heard this type of gibberish in an investment meeting, I would start running for the hills. Instead, the venture capitalists at Sequoia loved what Sam Bankman-Fried was saying and promoted FTX and its services to induce customers to use the FTX platform for crypto trading and investing to increase the value of their significant investments in FTX.
So, the venture capitalists backing and active support were integral to FTX’s fraudulent scheme. The VCs invested in FTX, knowing that the company would use the funds to conduct misleading activities—including banana trading—violating the law. And they actively supported these efforts by promoting FTX through their own websites, social media feeds, public interviews, and appearances at industry events, representing to investors and consumers that the FTX platforms were trustworthy and safe.
4) I want to ask your opinion about another lawsuit related to Sam Bankman-Fried. Sam’s parents, Joseph Bankman and Barbara Fried, are both Stanford Law School professors, one of the best law schools in our country. They were recipients of fraudulent cash transfers and real estate valued at $26 million from Sam Bankman-Fried. Debtors of FTX and Alameda Research sued Sam’s parents in September 2023 in a clawback lawsuit to recover damages.
Yes, I read that Sam’s parents, Stanford Law School professors Joseph Bankman and Barbara Fried, are saying that FTX’s lawsuit is seeking “to capitalize on the sheer fact” that their son was a founder and executive of FTX without ever proving that they held power over the company or were aware of problems that led to its collapse while accepting ill-gotten gain payments amounting to $26 million from their son without any questions. So far, Sam Bankman-Fried’s parents have not been charged with any crime relating to FTX, Alameda Research, or their son’s criminal conduct. If Sam were my son, as a parent in the legal profession, I would have at least asked how he was able to gift me $26 million in cash and real estate and maybe asked a few questions about FTX’s apparent role as a money-laundering operation.
However, I am not a lawyer, especially not one who teaches at Stanford Law. Nor am I the father of Sam Bankman-Fried. While stealing $10 billion in investor funds is not the same as killing teenagers in a mass school shooting, I would like to mention Oakland County prosecutor Karen McDonald, who did something extraordinary and first of its kind after saying, “I am angry. I’m angry as a mother. I’m angry as the prosecutor. I’m angry as a person that lives in this county”. She stood up at a press conference three days after a massive school shooting that killed four teenagers and injured seven and announced she would be charging the school shooter’s parents for grossly neglecting their parental duty by not averting the obvious danger their son presented—and so were directly responsible for the deaths in the son’s mass shooting. This prosecutor won her first-of-its-kind case. The parents of the mass school shooter were found guilty of involuntary manslaughter even without pulling the son’s gun’s trigger. These parents are the first US parents to be charged in a mass school shooting committed by their child.
5) My final question to you, William, for part one of our interview series is also regarding sentencing. Today, Changpeng Zhao was sentenced to four months in prison. Any thoughts on one of the richest people being sentenced to prison on money laundering charges?
Binance founder Changpeng Zhao, with an estimated $33 billion fortune, pleaded guilty and stepped down from Binance as part of a settlement with the US Department of Justice in November of 2023. As part of the agreement, CZ waived the right to appeal any sentence up to 18 months in prison. CZ also agreed to pay a fine of $50 million. Binance agreed to pay $4.3 billion in fines.
While prosecutors had requested three years of prison time for CZ, double the sentencing guideline of 18 months, because the “scope and ramifications of CZ’s misconduct at Binance were massive.” Today, Changpeng Zhao found out that he will serve four months of jail time for violations of the Bank Secrecy Act during his time at Binance which seems minimal.
Read more: Too harsh or too lenient? Changpeng Zhao’s sentence divides opinion
This is Part One of a three-part series interview with William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX and Tether, conducted by Selva Ozelli exclusively for crypto.news. Part One is about Sam Bankman-Fried’s and Changpeng Zhao’s prison sentences. Part Two is about cryptocurrency and banking. Part Three is about the future of NFTs.
You might also like: CZ sentenced and SBF’s deal: April’s crypto crime round-up
1) For the benefit of crypto.news readers, please tell us about your career path that led you to becoming a successful technology-focused venture capitalist.
After graduating from the University of Southern California with a degree in accounting and an MBA with distinction from Harvard Business School, where I was appointed a Kauffman Fellow, I worked for Arthur Andersen as a Senior Consultant with their Financial Services Group (“Andersen”). At Andersen, I assisted banks and S&Ls in their asset securitization and risk segmentation efforts. I also advised Japanese banks on their US market entry strategies.
After Andersen, I spent seven years in business planning and new venture roles at The Walt Disney Company (Disney) the world’s largest consumer products licensor. My tenure at Disney included finance and operational roles at Euro Disney, the Disney Store retail chain, and Disney Consumer Products. I also oversaw strategic planning and financial operations for Disney Licensing.
After Disney, my career as a technology-focused venture capitalist began when I became the Managing Director at Idealab! Capital Partners (“ICP”), the world’s first consumer Internet venture capital firm that was an early investor in some of the leading Web1 era companies including PayPal, Netzero, MP3.com, and Goto.com. I later co-founded Clearstone Venture Partners, a $700M early-stage focused venture capital firm where I concentrated my investments on communications and consumer technology companies. And I also co-founded and co-managed Crypto Currency Partners, a blockchain equity investment fund where I incubated and invested in more than 30 Bitcoin, blockchain, and cryptocurrency-related investments with early notable investments in Coinbase, Kraken, Bitfury, Authy, ChangeTip, and Circle.
I co-developed the first crypto derivative used to trade pre-release Ethereum. I also co-founded many other transformative crypto companies, including Tether, the first fiat-backed stablecoin and the world’s most traded cryptocurrency, and GoCoin, a pioneering crypto payments processor. I co-founded WAX, a blockchain built for video game and NFT virtual item trading.
I was also an early investor in PayPal, and highly doubt the payments giant will bring much innovation to the stablecoin space.
2) Please tell us about your thoughts concerning Sam Bankman-Fried’s 25-year prison sentence. The former FTX CEO was found guilty of six counts of fraud and one count of money laundering.
Sam Bankman-Fried swiftly fell from the top three crypto titan spots with a personal net worth once exceeding $26 billion after CoinDesk unveiled a faulty Alameda balance sheet in November 2022. This, in turn, resulted in industry-wide panic and concern about FTX, a centralized cryptocurrency exchange, and its liquidity. FTX traded in highly leveraged spots, derivatives, options, and products.
As the story unraveled, we learned that FTX’s losses were much, much bigger than many originally thought: The executives behind the now-bankrupt FTX and Alameda stole over $10 billion in customer funds during 2021, a crypto and NFT bull market. Sam Bankman-Fried was found guilty of fraud for stealing at least $10 billion from customers and investors , and in March 2024, he was sentenced to 25 years in prison and ordered to pay $11 billion in fines. Sam Bankman-Fried has appealed his prison sentence.
I would like to touch upon multiple factors that might have contributed to Sam Bankman-Fried’s fraud. Sam is a Massachusetts Institute of Technology (MIT) graduate with a degree in physics and a minor in mathematics; he is a former Jane Street Capital international exchange-traded funds (ETFs) trader. He had slim to non-work experience in crypto, blockchain or derivatives when he founded both FTX and the crypto trading company Alameda Research in 2018. I would like to point out that ETFs are not derivatives; they are investment funds that were only approved by the Securities Exchange Commission (SEC) to invest in BTC at the beginning of this year. Therefore, SBF was ill-equipped to manage a highly leveraged crypto exchange and a hedge fund, which declared Chapter 11 bankruptcy on November 11, 2022, marking one of the biggest financial frauds in American history. The failure of FTX shook the volatile crypto market, which lost billions at the time, falling below a $1 trillion valuation.
SBF’s quick rise to fame in the crypto industry was fueled by the media, influencers, and celebrity spokespeople who made him into this investment genius, likening him to JP Morgan and Warren Buffet, who dressed like a beach bum with unwieldy hair. You could say that mainstream media influencers were complicit in SBF’s fraud, providing him with extensive coverage even post-FTX bankruptcy. Think about it: Michael Lewis’s book, “Going Infinite: The Rise and Fall of a New Tycoon,” was released on October 3, 2023, the same day the criminal trial against Sam Bankman-Fried began in federal Manhattan court.
In June of 2023, dozens of lawsuits against Sam Bankman-Fried, his colleagues, FTX investors, and celebrity spokespeople, influencers were combined into one legal proceeding, with many more lawsuits still waiting to be filed. Some of these class action suits are being settled. And Sam Bankman-Fried has agreed to help FTX customers go after celebrity promoters and influencers by flipping.
But investors of FTX were also complicit in Sam Bankman-Fried’s fraud. These FTX investors included Binance and the best of the best venture capital firms such as NEA, IVP, Third Point Ventures, Tiger Global, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Temasek, Thoma Bravo, Paradigm Operations, and others. These investors must not have done any due diligence on the financial statements of FTX and Alameda Research, which were likely prepared on “Quick Books.”
3) The investor’s role in FTX’s fraud has not been addressed until now, and I am glad you are speaking about this. In February 2023, Robbins Geller, a well-known class action law firm, filed a first-of-its-kind lawsuit against venture capital firms that backed FTX.
These venture capital firms employ young, untrained people who know nothing about crypto, derivatives, financial risk, blockchain, or who Satoshi Nakamoto is—last month, U.K. Judge James Mellor decided that Craig Steven Wright apparently is not Satoshi Nakamoto—as the industry is very young. These young, untrained venture capitalists who can’t even read a financial statement were impressed with Sam Bankman-Fried based on the intensely orchestrated media hype about him.
For example, I read that when venture capitalists at Sequoia Capital, the legendary firm that funded Apple, Google, and Instagram, met Sam Bankman-Fried, he did not so much to talk about the technology or the financial statement risk exposure of his crypto exchange, FTX, or about his hedge fund, Alameda Research. What SBF talked about was bananas—the yellow fruit. Apparently, Sam Bankman-Fried said things like, “I want FTX to be a place where you can do anything you want with your next dollar. You can buy Bitcoin. You can send money in whatever currency to any friend anywhere in the world. You can buy a banana. You can do anything you want with your money from inside FTX.” Frankly, if I heard this type of gibberish in an investment meeting, I would start running for the hills. Instead, the venture capitalists at Sequoia loved what Sam Bankman-Fried was saying and promoted FTX and its services to induce customers to use the FTX platform for crypto trading and investing to increase the value of their significant investments in FTX.
So, the venture capitalists backing and active support were integral to FTX’s fraudulent scheme. The VCs invested in FTX, knowing that the company would use the funds to conduct misleading activities—including banana trading—violating the law. And they actively supported these efforts by promoting FTX through their own websites, social media feeds, public interviews, and appearances at industry events, representing to investors and consumers that the FTX platforms were trustworthy and safe.
4) I want to ask your opinion about another lawsuit related to Sam Bankman-Fried. Sam’s parents, Joseph Bankman and Barbara Fried, are both Stanford Law School professors, one of the best law schools in our country. They were recipients of fraudulent cash transfers and real estate valued at $26 million from Sam Bankman-Fried. Debtors of FTX and Alameda Research sued Sam’s parents in September 2023 in a clawback lawsuit to recover damages.
Yes, I read that Sam’s parents, Stanford Law School professors Joseph Bankman and Barbara Fried, are saying that FTX’s lawsuit is seeking “to capitalize on the sheer fact” that their son was a founder and executive of FTX without ever proving that they held power over the company or were aware of problems that led to its collapse while accepting ill-gotten gain payments amounting to $26 million from their son without any questions. So far, Sam Bankman-Fried’s parents have not been charged with any crime relating to FTX, Alameda Research, or their son’s criminal conduct. If Sam were my son, as a parent in the legal profession, I would have at least asked how he was able to gift me $26 million in cash and real estate and maybe asked a few questions about FTX’s apparent role as a money-laundering operation.
However, I am not a lawyer, especially not one who teaches at Stanford Law. Nor am I the father of Sam Bankman-Fried. While stealing $10 billion in investor funds is not the same as killing teenagers in a mass school shooting, I would like to mention Oakland County prosecutor Karen McDonald, who did something extraordinary and first of its kind after saying, “I am angry. I’m angry as a mother. I’m angry as the prosecutor. I’m angry as a person that lives in this county”. She stood up at a press conference three days after a massive school shooting that killed four teenagers and injured seven and announced she would be charging the school shooter’s parents for grossly neglecting their parental duty by not averting the obvious danger their son presented—and so were directly responsible for the deaths in the son’s mass shooting. This prosecutor won her first-of-its-kind case. The parents of the mass school shooter were found guilty of involuntary manslaughter even without pulling the son’s gun’s trigger. These parents are the first US parents to be charged in a mass school shooting committed by their child.
5) My final question to you, William, for part one of our interview series is also regarding sentencing. Today, Changpeng Zhao was sentenced to four months in prison. Any thoughts on one of the richest people being sentenced to prison on money laundering charges?
Binance founder Changpeng Zhao, with an estimated $33 billion fortune, pleaded guilty and stepped down from Binance as part of a settlement with the US Department of Justice in November of 2023. As part of the agreement, CZ waived the right to appeal any sentence up to 18 months in prison. CZ also agreed to pay a fine of $50 million. Binance agreed to pay $4.3 billion in fines.
While prosecutors had requested three years of prison time for CZ, double the sentencing guideline of 18 months, because the “scope and ramifications of CZ’s misconduct at Binance were massive.” Today, Changpeng Zhao found out that he will serve four months of jail time for violations of the Bank Secrecy Act during his time at Binance which seems minimal.
Read more: Too harsh or too lenient? Changpeng Zhao’s sentence divides opinion
US DOJ Taps Forensic Risk Alliance to Oversee Binance Compliance
One of the conditions of the arrangement was the appointment of a third-party business.
FRA will be able to examine the company’s internal data, facilities, and personnel.
Reports indicate that the US Department of Justice (DOJ) has entrusted the international consultant company Forensic Risk Alliance (FRA) to oversee Binance’s compliance with regulatory mandates for the next three years.
As part of its November 2023 plea bargain, Binance admitted to federal accusations of money laundering and paid a $4.3 billion fine. One of the conditions of the arrangement was the appointment of a third-party business to oversee the exchange’s compliance for the next three years.
Outsourcing Compliance Monitoring
According to a Bloomberg report from May 10, FRA will be able to examine the company’s internal data, facilities, and personnel in order to notify the DOJ on the company’s operations. The DOJ apparently originally considered appointing Sullivan & Cromwell to the contract, but ultimately decided to go with FRA because of the firm’s history of representing the defunct cryptocurrency exchange FTX.
Creditors of FTX reportedly accused Sullivan & Cromwell of being complicit in the “FTX Group’s multibillion dollar fraud” in February. In a court filing that was part of the class-action case, the creditors alleged that S&C was aware of the theft of monies belonging to Class Members, as well as the omissions, untruthful and fraudulent acts of FTX US and FTX Trading Ltd.
Sullivan & Cromwell is reportedly expected to be chosen for a separate five-year monitoring position for Binance, representing the Financial Crimes Enforcement Network of the Treasury Department, however.
This purported hiring follows the recent imprisonment of Changpeng Zhao, the former CEO of Binance. Zhao received a four-month jail term on April 30 for failing to keep the cryptocurrency exchange’s anti-money-laundering policy functioning.
Highlighted Crypto News Today:
Bitcoin Plummets Over $2,000. Will BTC Continue to Decline?
FRA will be able to examine the company’s internal data, facilities, and personnel.
Reports indicate that the US Department of Justice (DOJ) has entrusted the international consultant company Forensic Risk Alliance (FRA) to oversee Binance’s compliance with regulatory mandates for the next three years.
As part of its November 2023 plea bargain, Binance admitted to federal accusations of money laundering and paid a $4.3 billion fine. One of the conditions of the arrangement was the appointment of a third-party business to oversee the exchange’s compliance for the next three years.
Outsourcing Compliance Monitoring
According to a Bloomberg report from May 10, FRA will be able to examine the company’s internal data, facilities, and personnel in order to notify the DOJ on the company’s operations. The DOJ apparently originally considered appointing Sullivan & Cromwell to the contract, but ultimately decided to go with FRA because of the firm’s history of representing the defunct cryptocurrency exchange FTX.
Creditors of FTX reportedly accused Sullivan & Cromwell of being complicit in the “FTX Group’s multibillion dollar fraud” in February. In a court filing that was part of the class-action case, the creditors alleged that S&C was aware of the theft of monies belonging to Class Members, as well as the omissions, untruthful and fraudulent acts of FTX US and FTX Trading Ltd.
Sullivan & Cromwell is reportedly expected to be chosen for a separate five-year monitoring position for Binance, representing the Financial Crimes Enforcement Network of the Treasury Department, however.
This purported hiring follows the recent imprisonment of Changpeng Zhao, the former CEO of Binance. Zhao received a four-month jail term on April 30 for failing to keep the cryptocurrency exchange’s anti-money-laundering policy functioning.
Highlighted Crypto News Today:
Bitcoin Plummets Over $2,000. Will BTC Continue to Decline?
