Introduction
Changpeng “CZ” Zhao, the founder and former CEO of Binance, opened up about his harrowing experience in prison, describing it as a terrifying and challenging time that he would not wish upon anyone. Zhao served a four-month sentence in the United States after pleading guilty to charges related to money laundering, an outcome that necessitated his resignation from the helm of Binance amid a substantial settlement valued at $4.3 billion with U.S. federal authorities.
Prison Experience
In a recent interview at the Token2049 conference in Dubai, Zhao shared insights into his prison experience with Farokh Sarmad of Rug Radio, highlighting the overwhelming environment he faced upon entry.
“The moment you step inside, you’re surrounded by intimidating individuals covered in tattoos, with some even having face ink, and they’re all shouting over one another,”
he recounted.
“Walking in, it was clear that this was not going to be enjoyable.”
Zhao described the humiliating intake procedures, which included a strip search that required him to spread his buttocks—“an extremely tough moment,” he admitted. He also recalled the daunting nature of his cellmate, a convicted double murderer serving a substantial sentence. Due to his non-U.S. citizenship, Zhao was not eligible for a minimum-security facility, landing instead in a low-security prison where his cellmate had secured placement through good behavior.
“I shared a cell with a guy who had a 30-year sentence for killing two people; we got along fine, though,”
he noted.
Interactions with Inmates
During his incarceration, Zhao did not find inmates treating him with any special regard due to his cryptocurrency notoriety or wealth. Instead, he described a relatively pleasant interaction with fellow inmates, stating that they were quite kind.
“I don’t feel they treated me any differently; I still keep in touch with a few friends I made there. You can find good people everywhere,”
he mentioned.
Psychological Challenges
However, the psychological strain presented the most substantial challenge for Zhao, as each day brought the stress of potentially facing additional charges and extending his sentence.
“It highlighted what truly matters—your health, family, and then your work,”
he expressed, sharing the simple longing for his family more than any luxuries like comfortable bedding or good food.
Reflection and Future Plans
Zhao has revealed plans to delve deeper into this personal ordeal in an upcoming book. His time in prison has notably shifted his perspective, particularly in relation to former FTX co-founder Sam Bankman-Fried, who is currently serving a lengthy 25-year sentence following his conviction on multiple fraud charges connected to the collapse of his crypto exchange. Once openly critical of Bankman-Fried, Zhao referred to him as a “psychopath” during their public disputes last year. However, with the benefit of his own experiences, Zhao’s outlook seems to have softened.
“I wouldn’t want anyone to endure prison, but I firmly believe that bad behavior must cease,”
he stated, expressing skepticism about the benefits of extended sentences for reform, arguing that long stays often lead inmates to resign themselves to their circumstances rather than seek personal redemption.
