Binance Founder CZ Says Will Remain Passive Investor in Crypto After Jail Term

Crypto exchange Binance founder and former CEO Changpeng Zhao (CZ) has revealed that he would remain a passive crypto holder and investor after serving his four-month sentence in a federal prison in the United States.

CZ to Remain Passive Investor

In a tweet addressing his followers and crypto community members, the Binance founder expressed appreciation for the support he has received so far. He stated that the crypto industry has entered a new phase in its journey where compliance is very important.

I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).

I will remain a…

— CZ 🔶 BNB (@cz_binance) May 1, 2024

Upon completing his jail term, CZ will focus on crypto education and passive investment. The crypto mogul unveiled his plans to launch a non-profit education project in mid-March. The platform, Giggle Academy, would be for children in grades one through 12. CZ said the project would be gamified and adaptive and would have no revenue.

CZ further explained in the tweet that the silver lining of the process that led to his sentencing is that Binance has been under scrutiny for so long, and users’ assets have remained safe. To elaborate, he used the term SAFU, which stands for Secure Asset Fund for Users, an emergency fund Binance created seven years ago to ensure customer funds are protected.

CZ’s Sentencing

Yesterday, a U.S. judge ruled that CZ would spend four months behind bars for his criminal offense at Binance, rejecting federal prosecutors’ recommendation of a 36-month sentence. Judge Richard Jones’s decision concluded a case brought against CZ by the U.S. Department of Justice (DOJ) in November. 

The DOJ accused CZ of willfully violating the Bank Secrecy Act and failing to implement an effective anti-money laundering program at Binance. CZ struck a plea deal with the agency and stepped down from the position of Binance’s CEO with a $50 million fine. In addition, he stepped down as chairman of the board of directors for Binance’s U.S. arm, Binance.US.