Binance Founder CZ on “Terrifying” Prison Experience: Health and Family Now Come Before Work

Changpeng Zhao (CZ), the founder and former CEO of Binance, opened up about his four-month prison experience in an interview with Farokh, describing it as “scary” and “extremely hard” but transformative, shifting his focus to health and family over work. Serving time in 2024 for anti-money laundering violations, CZ detailed strip searches, a double-murderer cellmate, and the mental toll of incarceration’s uncertainty. He also expressed sympathy for FTX’s Sam Bankman-Fried (SBF), serving 25 years for fraud, while critiquing long U.S. sentences. Beyond his prison reflections, CZ also discussed memecoins, Binance’s role, and crypto’s future, urging innovation over speculation. For the full interview, see our soundbite.

CZ’s Legal Troubles and Low-Security Prison Placement

Changpeng Zhao’s legal woes began with a November 2023 guilty plea to violating the U.S. Bank Secrecy Act, as Binance, the world’s largest crypto exchange, enabled ~$900 million in transactions breaching sanctions, including with terrorist groups like Hamas, al-Qaeda, and Islamic State. Prosecutors alleged CZ prioritized growth over compliance, with one staffer joking about welcoming drug money. On April 30, 2024, the U.S. District Judge Richard Jones sentenced CZ to four months, rejecting prosecutors’ three-year request, citing his cooperation and lack of direct knowledge of illegal activities. CZ paid a $50 million fine, Binance settled for $4.3 billion, and he stepped down as CEO.

Despite his white-collar crime and voluntary surrender, CZ was placed in a low-security prison, Lompoc II in California, rather than a minimum-security facility, due to his non-U.S. citizenship (Canadian-Emirati). “I was placed in a low-security prison because I’m not a U.S. citizen,” he explained, noting this exposed him to inmates with serious convictions, unlike the “camp-like” settings reserved for U.S. citizens. He served from June to September 2024, with a brief immigration detention post-release over visa issues, resolved by his legal team.

A “Terrifying” Prison Experience Reshapes Priorities

CZ described his prison experience as “extremely hard” and “terrifying,” beginning with a jarring entry into Lompoc II’s 240-inmate unit. “I saw big, buff guys with face and head tattoos yelling over each other,” he recalled, struggling as a “new fish” to open his cell door under watchful eyes. “Strip searches, showing your body during intake, and being locked in a cell were humiliating experiences,” he said. His first cellmate, a double murderer serving a 30-year sentence (12 years served, transferred for good behavior), was initially intimidating but amicable. “We got along fine,” CZ noted, finding inmates “polite and nice” once acquainted.

The mental toll was profound, driven by fear of sentence extensions or new charges. “I was constantly worried they might extend my sentence or bring up new charges,” he said, likening it to “Hotel California—you can check in, but you can never check out.” This uncertainty made four months feel endless: “If they had told me with certainty that I’d only serve four months, I could have handled it better.”

Isolation was stark, with no internet access. CZ relied on family messages, short calls, or a shared TV, mostly showing sports or sitcoms. Inmates secured a financial news channel after some expressed crypto curiosity, allowing CZ to glimpse updates like Senator Elizabeth Warren’s “war on crypto” or Trump’s charges, which he now finds “absurdly funny.” “In prison, I didn’t miss good food or even a comfortable bed as much as I missed my family,” he said. “Surprisingly, I didn’t miss money or work either,” though stepping down as CEO was emotional.

CZ formed friendships, staying in touch with inmates he felt were “severely over-punished,” lacking legal resources or internet access, limited to a “clunky messaging system.” “It’s tough for them, and I try to help where I can,” he said. The experience reshaped his priorities: “Health and family come first, followed by work and everything else.” Reintegration was slow—“It took me a few months to ease back into society,” avoiding social media and events—leading him to focus on ventures like Giggle Academy, an educational platform.

Thoughts on SBF and Critique of Long Sentences

CZ refrained from directly commenting on Sam Bankman-Fried’s case, stating, “I can’t say what’s right or wrong,” but expressed general empathy for those incarcerated: “I don’t wish the prison experience on anyone—it’s not easy,” and “I sympathize with anyone in prison because it’s a very tough experience.” He emphasized that “bad behavior, such as fraud, lying, and deception, needs to stop.”

SBF, FTX’s founder, was sentenced to 25 years in March 2024 for defrauding customers of around $10 billion, convicted on seven fraud and conspiracy counts. In April 2025, SBF was transferred to Victorville Medium II Federal Correctional Institution, a medium-security California prison known as “Victimville” for violence and poor conditions.

CZ critiqued long U.S. prison sentences, observing that inmates serving more than 10 years “often lose hope of reforming themselves” and become institutionalized. “Long prison usually don’t really help,” he said, noting that good behavior can reduce sentences (10 days off per 30 served, cutting terms to around two-thirds), but long terms cost taxpayers without fostering rehabilitation. “If the goal is to help someone learn from their mistakes and truly change, there might be better ways than simply locking them away for long periods,” CZ suggested.