Binance Founder CZ Reveals Prison Guards Asked Him for Crypto Investment Tips While He Was in Jail

Binance founder Changpeng Zhao revealed that prison guards at a California correctional facility approached him for cryptocurrency investment tips

Binance founder Changpeng Zhao encountered an unusual situation during his recent confinement in a California correctional facility: prison guards approached him for cryptocurrency investment advice.

Zhao, who is facing legal consequences for money laundering violations tied to his exchange, revealed this incident during a speech at the Binance Blockchain Week in Dubai.

"A couple of guards recognized me and then asked me, ‘What coin should I buy?'" he said, adding that the guards' interest in crypto despite his situation highlights how mainstream the asset class has become.

However, Zhao noted that he explained to the guards that he had no internet access and limited information due to confinement.

"I told them, look, I'm inside. I don't have any access to information… so we don't talk about crypto," he said.

Zhao's stint in the correctional facility followed his guilty plea to U.S. money laundering charges earlier this year, which resulted in a four-month sentence.

Prosecutors alleged that Binance, under Zhao's leadership, failed to adequately monitor and report over 100,000 suspicious transactions for more than four years, involving groups such as Hamas, al-Qaeda, and ISIS.

They also cited Binance's facilitation of child exploitation materials sales and a significant influx of ransomware earnings.

In response to these violations, Binance was hit with a record-breaking $4.32 billion penalty from the U.S. Department of Justice, while Zhao personally agreed to pay a $50 million criminal fine and an additional $50 million to the Commodity Futures Trading Commission (CFTC).

During his speech, Zhao also shared his observations of prison life, describing inmates as "very nice people" and noting that some appeared to be serving extended sentences for minor offenses.

"I think a decent portion of them have no reason to be there… they’re super nice guys," he commented.