According to a Bloomberg report, Changpeng Zhao (CZ), co-founder and former CEO of Binance, was released from a US correctional facility on Friday, September 27th. CZ, who was sentenced to four months in prison in April 2024, was originally supposed to regain his freedom on Sunday, 29th of September.
As reported by Bitcoinist, federal guidelines allow inmates to be released earlier if their official 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,” a Federal Bureau of Prisons policy statement reads.
Why Was CZ In Prison For Four Months?
In November 2023, Zhao pleaded guilty to failing to implement an effective anti-money laundering program as CEO of Binance, the world’s largest exchange. After Binance agreed to a corporate settlement of $4.3 billion, its former CEO was also charged with a personal $50 million fine.
As part of the agreement with the United States Justice Department, CZ left his role as CEO and will not occupy any future executive position at the exchange. The Binance co-founder was replaced by Richard Teng, the former head regulator for the Abu Dhabi Global Market.
Besides admitting to infringement of anti-money laundering guidelines, Zhao’s guilty plea also included unlicensed money transmitting and sanctions violations. The prosecutors wrote in the sentencing memo:
Zhao knew that his decision not to implement an effective AML program would result in Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions in violation of US law.
During CZ’s hearing, the prosecutors asked the court to pass a 36-month jail sentence to the Binance co-founder to reflect the seriousness of the offense. However, Judge Richard Jones reduced the sentence to four months, stating there was no proof of Zhao’s knowledge of illegal activities at his company.
What Next For The Binance Co-Founder?
As earlier mentioned, CZ agreed to pay a $50 million personal fine after pleading guilty to the charges brought against him. Nonetheless, the former CEO’s fortune has been barely impacted by the case, as his new worth is still estimated at over $60 billion.
It remains to be seen what the Binance co-founder’s next endeavor will be, especially after being prohibited from taking any executive roles with the exchange. It is worth noting, though, that Zhao pledged in his parting message to remain a “passive investor and holder” in crypto.
Additionally, CZ revealed before his sentencing plans to build an educational platform named Giggle Academy. Giggle Academy is aimed at making basic education free and accessible to underprivileged kids around the world.
