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- Binance founder Changpeng Zhao has been released from U.S. prison after serving a four-month sentence
- Zhao was sentenced for failing to implement anti-money laundering measures at Binance and agreed to step down as CEO
- His early release comes as part of a routine practice when official dates fall on weekends or holidays
Changpeng Zhao, founder of Binance, has been released from U.S. custody after serving a four-month sentence for violating the Bank Secrecy Act. Zhao was sentenced earlier this year after his cryptocurrency exchange, Binance, failed to establish sufficient anti-money laundering controls. His release occurred two days ahead of his scheduled date, in accordance with standard U.S. Bureau of Prisons procedures.
Prosecutors Sought Three-year Sentence
Zhao’s legal troubles stemmed from allegations that Binance did not report thousands of suspicious transactions linked to criminal activities, including terrorism financing and child exploitation. U.S. prosecutors initially sought a three-year prison term, but Zhao’s clean criminal record and strong character references contributed to a reduced sentence.
Binance agreed to pay over $4 billion to settle charges with U.S. authorities, while Zhao himself had to hand over $50 million.
“GM”
Zhao celebrated his freedom with a very pertinent X post, his first since May:
gm
— CZ 🔶 BNB (@cz_binance) September 28, 2024
Although Zhao has now regained his freedom, he is barred from returning to any executive role at Binance, although he remained akey shareholder. Binance’s replacement, Richard Teng, has taken over as CEO, with plans to further globalize the exchange while reducing its reliance on a single leader.
Despite stepping down, Zhao remains a significant figure in the cryptocurrency world, with a personal net worth estimated at around $25 billion, making him one of the wealthiest individuals ever to serve time in a U.S. prison.
This case has drawn significant attention as part of broader regulatory crackdowns in the cryptocurrency industry. Observers believe it signals the U.S. government’s commitment to enforcing compliance with financial regulations in the fast-evolving world of digital assets.
