As bitcoin continues to hover around all time highs, Binance founder Changpeng Zhao is beginning to serve a four month prison sentence in California as a result of his settlement with the U.S. Department of Justice.
He is "the richest person to do time in a US federal lock up", according to a Bloomberg report out Monday.
The report said that the ex-CEO will undergo his sentence at Lompoc II. This facility, located in Santa Barbara County, includes a low-security unit along with an adjacent satellite camp.
Now referred to as inmate 88087-510, he was first slated for Seatac federal detention center in Seattle due to not being a U.S. citizen - but eventually he was allowed to report to a lower security, white collar prison instead.
Seatac, similar to the Metropolitan Detention Center in Brooklyn, primarily detains individuals awaiting trial or sentencing for offenses ranging from fraud to homicide. The Lompoc prison, as per the Bureau of Prisons website, houses 2,160 inmates across its main facility and adjacent camp.
Zhao received a four-month sentence in April, significantly less than the three years sought by prosecutors. As a prominent figure in the industry, he transformed Binance into a highly successful exchange since its establishment in 2017. According to the Bloomberg Billionaires Index, Zhao's net worth is approximately $36.5 billion.
Zhao admitted guilt to the US government last year for not implementing a sufficient anti-money laundering program at Binance and paid a $4.3 billion fine.
He voluntarily surrendered in Washington state after traveling from Dubai.
Prison consultant Sam Mangel told Bloomberg: “He will be perfectly fine at Lompoc low. There are a lot of experiences that other inmates will be thirsty to hear about, especially in crypto.”
He added: “Now you have this guru coming in and being able to teach or educate them.”
