Binance founder and former CEO, Changpeng “CZ” Zhao, was released from a U.S. federal prison on Sept. 27, after serving a four-month sentence for Anti-Money Laundering (AML) violations, a spokesperson from the United States Federal Bureau of Prisons confirmed to Cointelegraph.
In November, CZ pled guilty to federal charges of failing to enforce adequate AML controls at Binance, the world’s largest cryptocurrency exchange by daily trading volume, according to a statement from the U.S. Department of Justice on Nov. 21. He also resigned from his position as CEO of Binance.
With an estimated net worth of $60 billion, CZ became the wealthiest individual ever to serve a prison sentence in the U.S.
CZ initially served two months in a minimum-security prison in Southern California before transferring to a halfway house in Long Beach, where he was granted supervised daytime outings, according to a Fortune report on Sept. 26. He had voluntarily returned to the U.S. from Dubai in April to serve his sentence.
“We’re pleased that CZ is back with his family,” a Binance spokesperson told Cointelegraph, noting that although CZ is no longer involved in managing or operating Binance, the company remains optimistic about his future endeavors. They also emphasized that Binance has continued to thrive under new leadership, surpassing 230 million global users.
CZ’s four-month sentence marked a significant reduction from the 36 months initially sought by the Department of Justice to “reflect the seriousness of the offense.” In addition to AML violations, his guilty plea included charges of unlicensed money transmitting and sanctions violations.
Prosecutors noted that CZ knowingly allowed Binance to facilitate transactions between U.S. users and individuals in sanctioned regions, including Iran, violating U.S. law. However, Judge Richard Jones, who presided over CZ’s sentencing on April 30, stated there was no evidence that CZ had direct knowledge of illegal activities at Binance.
As part of the case, CZ agreed to pay a $50 million fine, while Binance was fined $4.3 billion for violating U.S. AML regulations. Despite these penalties, CZ’s personal fortune remains unaffected, and he continues to hold a majority stake in Binance, with an estimated 90% ownership.
