Binance Founder CZ Released from US Prison

Binance founder and former CEO Changpeng “CZ” Zhao was released from a U.S. federal prison on September 27 after completing a four-month sentence related to Anti-Money Laundering (AML) violations, according to a spokesperson from the U.S. Federal Bureau of Prisons, as reported by Cryptografos.

CZ had entered a guilty plea in November, admitting to federal charges for failing to implement sufficient AML protocols at Binance, the world’s largest cryptocurrency exchange by trading volume. Following the plea, CZ also resigned from his role as CEO of the company, as detailed in a November 21 announcement by the U.S. Department of Justice (DOJ).

With an estimated net worth of around $60 billion, CZ became the richest individual ever to serve time in a U.S. prison.

In April, CZ voluntarily returned to the U.S. from Dubai to serve his sentence. The first two months of his incarceration were spent in a minimum-security prison in southern California, followed by his transfer to a halfway house in Long Beach, where he was permitted supervised outings during the day, according to a Fortune report published on September 26.

A Binance spokesperson expressed happiness at CZ’s return, saying, “We are thrilled that CZ is able to reunite with his family. Though he is no longer involved in managing Binance, we are eager to see his future endeavors. The exchange continues to prosper under our current leadership, having now surpassed 230 million users globally.”

Initially, the DOJ had sought a 36-month prison sentence for CZ, citing the gravity of the offense. However, the final four-month sentence represented a significant reduction.

The DOJ’s official statement emphasized that CZ’s guilty plea covered not only AML violations but also unlicensed money transmission and sanctions breaches. Prosecutors highlighted that CZ was aware that his failure to implement proper AML measures would enable Binance to facilitate transactions between U.S. customers and those in sanctioned countries like Iran.

During the sentencing on April 30, Seattle district court Judge Richard Jones noted that there was no conclusive evidence showing CZ was directly informed about illegal activities occurring at Binance.

As part of the plea deal reached in November, CZ agreed to pay a $50 million fine, while Binance itself was hit with a $4.3 billion penalty for violating U.S. AML regulations. Despite these legal battles, CZ’s personal fortune has remained largely intact.

The Binance founder still retains a dominant share in the company, reportedly holding as much as 90% of the exchange.

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