Changpeng “CZ” Zhao, the former CEO and founder of Binance, was released from a US federal prison on 27 September after serving a four-month sentence.
The punishment stemmed from his failure to implement adequate Anti-Money Laundering (AML) controls at the world's largest cryptocurrency exchange.
The United States Federal Bureau of Prisons confirmed his release to Cointelegraph.
In November, CZ pled guilty to charges related to these AML violations, a move that followed the US Department of Justice’s (DOJ) statement on 21 November regarding Binance's involvement. CZ subsequently stepped down as Binance's CEO but remains a significant shareholder. Despite facing legal trouble, CZ's estimated net worth remains around $60 billion, making him the wealthiest individual to have served time in a US prison.
In April, CZ voluntarily returned to the US from Dubai to begin his four-month sentence. He initially served two months in a minimum-security facility in southern California before transitioning to a halfway house in Long Beach, California, where he was permitted limited supervised excursions during the day.
His sentence marked a substantial reduction from the 36-month term that federal prosecutors initially sought, intended to reflect the seriousness of the AML offences.
Related reading：Soon-to-Be Prison-Free CZ Faces Lifetime Ban from Operating or Managing Binance: Is This a Death Sentence or an Unexpected Blessing?
CZ’s legal troubles extended beyond AML violations. The DOJ noted that his guilty plea also encompassed unlicensed money transmitting and sanctions violations. Prosecutors underscored that CZ knowingly allowed Binance to facilitate transactions between users in the United States and sanctioned regions, such as Iran, without implementing effective AML measures.
An excerpt from a US sentencing memorandum against Binance founder Changpeng Zhao filed on April 23. Source:Bwbx.io
During the April sentencing, Seattle District Court Judge Richard Jones defended his decision to impose a lighter sentence. He noted that no evidence directly implicated CZ in any illegal activities at Binance, contributing to the four-month prison term.
Additionally, CZ agreed to pay a $50 million fine as part of his plea deal, while Binance faced $4.3 billion in penalties for violating US AML regulations.
Despite the legal challenges, Binance continues to thrive under new leadership. A spokesperson for the company expressed optimism about CZ's future, even though he no longer holds an operational role at Binance.
Binance, under its current team, has surpassed 230 million global users, demonstrating its resilience amid regulatory scrutiny. CZ’s wealth and majority stake in the company have remained largely unaffected by his legal troubles.
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