Binance founder Changpeng Zhao to become richest prisoner in US history

Crypto exchange Binance continues to thrive despite its founder Changpeng Zhao’s numerous legal troubles.

Bloomberg estimates Binance likely generated around $9.8 billion in annual revenue in March. Despite the uncertainty surrounding Zhao’s decision and Binance’s legal troubles, the exchange’s daily operations continue without significant disruption.

Investors reported little change in their trading experience, and some say the deal provides certainty amid ongoing regulatory reviews.

Bloomberg journalists explain that if a judge in Seattle agrees with prosecutors and orders him imprisoned, Zhao will go down in the history books as the richest person to have served time in a US federal prison, thanks to his ownership of Binance and associated personal wealth. It will remain untouched, worth $43 billion.

Zhao’s wealth is expected to rise as Binance’s business ramps up amid the recent cryptocurrency bull run. Despite being given the title of CEO as part of an agreement with the government, it’s hard to ignore the Binance founder’s continued influence on the company.

Additionally, the agency notes that investors view Binance and Zhao differently than former archrival FTX, which went bankrupt after its founder Sam Bankman-Fried misappropriated users’ cryptocurrencies worth billions of dollars.

The most obvious change is Zhao stepping away from his role as the public face of the company. Although he wasn’t one to mingle with celebrities or invite reporters to his home the way FTX’s Bankman-Fried did, Zhao kept a low profile after pleading guilty.

In November 2023, Changpeng Zhao resigned as CEO of Binance as part of a multi-year lawsuit. US regulators accused the company of allowing transactions with customers in sanctioned regions. The entrepreneur pleaded guilty and settled with the US Department of Justice. Binance agreed to pay a total of $4.3 billion in fines to resolve the authorities’ claims, and Zhao will personally pay $50 million.

The US Department of Justice requested a 36-month prison sentence for Changpeng Zhao, the former head of the Binance cryptocurrency exchange. Zhao is expected to be sentenced in a Seattle courtroom on April 30.