• Changpeng Zhao (CZ), the billionaire founder of Binance, has commenced a four-month term in a federal prison located in Lompoc, California. This imprisonment follows a plea agreement with U.S. authorities regarding anti-money laundering (AML) charges related to Binance.
• Simultaneously, Sam Bankman-Fried, the founder of FTX, is undergoing a 25-year incarceration for fraudulent activities.

Changpeng Zhao, commonly known as CZ, the prominent personality behind Binance, has initiated his four-month sentence at a federal facility in Lompoc, California. This action is a consequence of a negotiated settlement with U.S. authorities pertaining to AML violations associated with Binance. The legal team representing Zhao, Latham & Watkins, has confirmed his detention status following his admission to the facility.

Back in April, Zhao received his sentence subsequent to admitting guilt to charges linked to facilitating money laundering activities through Binance. The duration of the sentence is shorter than the initial three-year period sought by federal prosecutors. In contrast, Zhao's defense team proposed a probation period of five months, while sentencing guidelines indicated a range of 12 to 18 months of incarceration.

As U.S. District Judge Richard Jones delivered the verdict, Zhao expressed regret and apologized for his wrongdoing. He admitted his oversight in deploying adequate anti-money laundering protocols within Binance, emphasizing the importance of acknowledging mistakes as the initial step towards assuming responsibility.

On a parallel note, the founder of FTX, Sam Bankman-Fried, finds himself serving a substantial 25-year prison sentence due to fraudulent activities.