A report from Bloomberg indicates that Changpeng Zhao (CZ), the co-founder and former CEO of Binance, was released from a US correctional facility on Friday, September 27th. Initially sentenced to four months in prison in April 2024, CZ was expected to regain his freedom on Sunday, September 29th.
According to Bitcoinist, federal regulations permit inmates to be released earlier if their scheduled release date falls on a weekend. “The Bureau of Prisons may release an inmate whose release date falls on a Saturday, Sunday, or legal holiday, on the last preceding weekday,” states a policy from the Federal Bureau of Prisons.
Why Was CZ Imprisoned for Four Months?
In November 2023, Zhao admitted guilt for failing to uphold an effective anti-money laundering program during his time as CEO of Binance, the largest exchange globally. After Binance reached a corporate settlement of $4.3 billion, he faced a personal fine of $50 million.
As part of the settlement with the US Justice Department, CZ stepped down from his role as CEO and is prohibited from holding any future executive positions at the exchange. Richard Teng, the former head regulator for the Abu Dhabi Global Market, has taken over his position.
In addition to admitting to breaches of anti-money laundering regulations, Zhao’s guilty plea included unlicensed money transmission and violations of sanctions. The prosecutors remarked in the sentencing memo:
Zhao was aware that his choice not to implement an effective AML program would lead to Binance enabling transactions between US users and those in Iran and other nations under sanctions, thus violating US law.
During the hearing, the prosecutors argued for a 36-month sentence to reflect the severe nature of the violations. However, Judge Richard Jones opted for a four-month sentence, citing a lack of evidence regarding Zhao’s awareness of any illegal activities at Binance.
What Lies Ahead for the Binance Co-Founder?
As previously noted, CZ consented to a $50 million personal fine following his guilty plea. Nevertheless, this legal case has had minimal impact on his wealth, with his net worth still estimated to exceed $60 billion.
It remains uncertain what direction the Binance co-founder will take next, particularly given his restriction from future executive roles at the exchange. However, Zhao expressed in his farewell message a commitment to being a “passive investor and holder” in the crypto space.
Moreover, before his sentencing, CZ shared plans to create an educational platform called Giggle Academy, which aims to provide free and accessible basic education for underprivileged children worldwide.
BNB price surges following CZ's release | Source: daily BNBUSDT chart on TradingView
Featured image from Binance, chart from TradingView
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish