On May 6, 2025, Changpeng “CZ” Zhao, the founder of Binance, shared his 4-month prison experience in the US during an interview with Rug Radio at Token2049 Dubai, describing it as “terrifying” and “extremely difficult,” but it also changed how he views life. Does this story reveal anything new about the person behind the crypto empire? Let's analyze in detail.
Prison Experience: “Terrifying” and “Not Fun”
CZ was sentenced to 4 months in prison in the US last year after pleading guilty to violating money laundering laws, leading to his resignation as CEO of Binance in a $4.3 billion agreement with authorities. In an interview with Farokh Sarmad, he recounted the moment he entered prison: “As soon as you walk in, you see men covered in tattoos, muscular, their faces and heads tattooed, yelling at each other. It’s not fun at all.” He described a rigorous screening process, including having to “strip and bend over” – an “extremely difficult” experience he wouldn’t want anyone to endure.
As he is not a US citizen, CZ was detained in a low-security prison instead of a minimum-security facility, where he shared a cell with an inmate sentenced to 30 years for killing two people. “We lived together for a few weeks and got along,” CZ said, although he admitted he was “very scared” at first. Despite being a billionaire and a prominent figure in the crypto industry, he stated that he was not treated differently: “The inmates were all very nice. I still keep in touch with a few friends from there – you can meet good people anywhere.”
Changing Priorities: Family and Health Before Work
CZ reveals that the biggest pressure is mental stress, fearing prolonged sentencing due to new charges, as his friends in prison have experienced. “This made me realize what is most important: health comes first, then family. Work and other things come after. I don’t remember good food, just remember a slightly comfortable bed, but I miss my family the most,” he shared. This experience has changed CZ's priorities, from a busy entrepreneur to someone who values family more.
He also plans to write a detailed book about his time in prison, promising to provide deeper insights.
New Perspective on Sam Bankman-Fried
The prison experience helped CZ change his view of Sam Bankman-Fried – co-founder of FTX, currently serving a 25-year sentence for seven counts of fraud and conspiracy following the FTX collapse. Previously, in 2022, CZ had called Bankman-Fried a “psychopath” after a public dispute, especially when Bankman-Fried viewed CZ as a “training opponent.” However, after experiencing prison himself, CZ expressed: “I don’t wish anyone to go through prison, but bad behavior needs to stop. A long sentence like 25 years often doesn’t help much. After seeing people getting 10 years become lifers, they no longer think about rehabilitation.”
Impact on the Crypto Market
CZ's story brings many signals:
Increasing personal trust: CZ's sincerity about prison could reinforce his image and that of Binance, which still leads the market (handling $1.8 billion in ETF cash flow last week).
Legal Warning: CZ's experience reminds the crypto community of legal risks, especially as the industry faces cases like Nomad Bridge ($190 million) and KNA (the “pig butchering” scam).
Support for Recovery: Sympathy for Bankman-Fried could drive dialogue about judicial reform in crypto, impacting initiatives like Ethereum (soon upgrading to Fusaka).
Future Prospects
With Bitcoin recovering and the crypto market growing ($3.4 billion in fund cash flow last week), CZ's story may inspire investors, emphasizing the values of family and health. His upcoming book may expand his influence within the community.
Conclusion: Will CZ Come Back Stronger?
Changpeng Zhao shares a 'terrifying' 4-month prison experience but offers valuable lessons about family and health, while also changing his perspective on Sam Bankman-Fried. Despite losing the CEO position at Binance, CZ's story reflects resilience, promising a positive impact on his personal image and the crypto industry. Investors should closely monitor to receive CZ's new message.
Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.