World's Richest Prisoner: Meet Binance Founder Changpeng Zhao With Rs 3.5 Lakh Crore Net Worth

World's Richest Prisoner:??47-year-old Changpeng Zhao, the founder and former CEO of the world’s largest cryptocurrency exchange, 'Binance', has been sentenced to four months in prison for pleading guilty to breaching US anti-money laundering and sanctions laws last year. According to reports he was failed to prevent cybercriminals and terrorist groups from trading freely on Binance. As the founder of the world's largest cryptocurrency exchange, he was previously one of the most influential figures in the crypto industry. This marks the second instance of a prominent crypto boss being incarcerated, following Sam Bankman-Fried of FTX.

How Changpeng Zhao become the richest prisoner

According to the Telegraph, Changpeng Zhao, the founder of Binance who was once the most powerful crypto industry figure, has been declared the wealthiest prisoner globally after receiving a four-month jail term in Seattle. This verdict came after his admission of violating US anti-money laundering and sanctions laws in the previous year. Despite prosecutors seeking a three-year sentence, the court considered Zhao's positive track record, resulting in a shorter term. With an estimated net worth of $43 billion (Rs 3.5 lakh crore) from Binance, Zhao's imprisonment marks a significant development.

Changpeng Zhao, the founder of Binance | Photo: Reuters

With this verdict, Zhao emerges as the wealthiest individual ever to face imprisonment, both in the US and potentially worldwide, following FTX's Sam Bankman-Fried. Unlike Bankman-Fried, Zhao's $43 billion in assets remain unaffected by the sentence. Furthermore, the ongoing crypto market surge is poised to further bolster his wealth during his incarceration. Despite stepping down as Binance's CEO in 2023, Zhao retains a substantial 90% stake in the world's largest crypto exchange. Given his influence through close associates on the board, Zhao's impact on the company persists.

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Founded in 2017, Binance swiftly dominated the cryptocurrency trading landscape, catapulting its founder and CEO, Changpeng Zhao, into billionaire status. Offering various crypto exchange services globally, Binance faced setbacks when crypto markets crashed and regulatory scrutiny intensified. Recently, Zhao's conviction follows the sentencing of Sam Bankman-Fried, CEO of the now-defunct FTX exchange, to 25 years for a massive fraud scheme. Bankman-Fried was found guilty of misappropriating billions in customer funds for high-risk investments.

Comparing Sentences: Zhao vs. Bankman-Fried

US District Judge Richard Jones in Seattle delivered a shorter sentence than the three years sought by prosecutors. It was also below the maximum 1-1/2 years recommended by federal guidelines.

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Comparatively, Zhao's sentence was lighter than Sam Bankman-Fried's 25-year imprisonment in March. Bankman-Fried faced charges of embezzling $8 billion (Apprpx Rs 66,000 crore) from FTX customers, leading to the exchange's bankruptcy. He has appealed his conviction.

Prosecutors expressed satisfaction with Zhao's sentence, the outcome of years-long investigations. Living in the UAE, Zhao is beyond US jurisdiction.

Epic Day

US Attorney Tessa Gorman described the verdict as "an epic day," emphasizing the importance of incarceration in the case, US Attorney said, "This was an epic day. Incarceration was critical in this case and we’re pleased with the result.”

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