Changpeng Zhao, known as "CZ" and founder of the cryptocurrency exchange Binance, has shared a candid account of his prison experience following his legal troubles in the United States.
Despite his calm and composed public persona, Zhao described his four-month sentence as an “extremely hard” period that he would never wish on anyone.
Zhao’s legal troubles culminated in November 2023 when both he and Binance pleaded guilty to several charges of money laundering and regulatory violations.
As part of a settlement, Binance agreed to pay a hefty $4.3 billion in fines.
Initially facing a potential three-year prison sentence, Zhao’s time behind bars was ultimately reduced to four months after his legal team successfully argued that he was not directly involved in the illicit activities.
However, even with this reduction, Zhao found his entry into the U.S. prison system as an incredibly difficult period.
He recounted the brutal process of being strip-searched upon arrival, a moment that left him feeling dehumanised.
In a recent interview on Farokh Radio, Zhao openly shared his feelings, recalling,
“The minute you walk in, there are guys with tattoos, all big buff guys, [with] face tattoos, head tattoos, and they're all yelling over each other. When you're walking in, it’s like: This is not fun.”
He was also subjected to a strip search that involved spreading his "butt cheeks," an experience he said he would not wish on anyone.
He went on to explain that his first cellmate had been convicted of double murder, a situation that added an unsettling layer to his already difficult adjustment.
Zhao recalled,
"My celly had a 30-year sentence for murdering two guys at once.”
Despite the intimidating environment, he noted that he and his cellmate got along fine.
Zhao made it clear that despite his wealth and global fame as the founder of Binance, he was treated no differently from any other inmate.
He said,
"I don’t think they treated me very differently. All the guys, all the inmates were actually very nice.”
Most of the guards and prisoners had no idea who he was, and he was monitored like everyone else.
In his words,
“Once you are in prison, the prison guards don't care who you are, they just treat you like any other.”
His status did not shield him from the harsh realities of prison life, but he acknowledged that most inmates were respectful.
Zhao added that he still stays in touch with a few people he met during his time behind bars.
“You meet friends everywhere. There’s good people everywhere.”
The mental strain of prison life weighed heavily on Zhao, particularly the fear that his sentence could be extended unexpectedly for “some other random issues”.
He shared how watching fellow inmates face this uncertainty only added to the stress, stating,
“The hardest part was the mental stress, knowing that at any point, your sentence could be extended.”
This fear was a reality for many of his fellow prisoners, with some enduring endless delays in their release.
Reflecting on the time he spent behind bars, Zhao stated that the experience made him realise the importance of family and health.
He explained,
"Health is most important, and second is family… You don’t miss the good food; I missed the nice bed a little bit, but I missed my family.”
The ordeal highlighted the personal sacrifices he made during his time in prison, a stark contrast to his prior life of luxury.
While his time in prison left a lasting impact on him, Zhao expressed a more nuanced view of justice.
Although he was once sharply critical of other crypto figures like FTX’s Sam Bankman-Fried, who is currently serving a 25-year sentence, Zhao now seems more reflective.
He commented,
“I don't wish for anyone to go through a prison experience, but I do think that bad behaviour needs to stop. Long prison sentences usually don't really help that much, to be very frank.”
According to Zhao’s observation, extended time behind bars often breaks people rather than rehabilitates them.
“The guys who have like 10-year sentences—that becomes their life. They don't think about reforming themselves anymore.”
Zhao revealed that he is working on a book that will delve deeper into his prison experience, providing more insight into what life was really like during those four months.
His account promises to offer a unique perspective on the intersection of wealth, fame, and the prison system.
Despite his own hardships, Zhao maintained a sense of empathy towards those incarcerated.
His time in prison, although frightening and challenging, has clearly left him with a new understanding of both himself and the criminal justice system.
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