According to one Bloomberg reportChangpeng Zhao (CZ), co-founder and former CEO of Binance, was released from a US prison on Friday, September 27. CZ, who was sentenced to four months in prison in April 2024, was originally scheduled to regain his freedom on Sunday, September 29.
If reported by BitcoinistUnder federal guidelines, inmates can be released early 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 day of the week,” reads a Federal Bureau of Prisons policy statement.
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 $4.3 billion corporate settlement, the former CEO was also hit with a $50 million personal penalty.
As part of the agreement with the U.S. Department of Justice, CZ has resigned from his role as CEO and will not hold any future leadership positions at the exchange. The Binance co-founder was replaced by Richard Teng, the former chief regulator for the Abu Dhabi Global Market.
In addition to admitting that Zhao had violated anti-money laundering guidelines, Zhao’s guilty plea also included transferring money without a license and violating sanctions. The prosecutors wrote in the penalty 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, prosecutors asked the court to impose a 36-month prison sentence on the Binance co-founder to reflect the seriousness of the crime. However, Judge Richard Jones reduced the sentence to four months, saying there was no evidence that Zhao was aware of illegal activities in his company.
What next for the Binance co-founder?
As previously mentioned, CZ agreed to pay a personal fine of $50 million after pleading guilty to the charges brought against him. Nevertheless, the former CEO’s fortunes have hardly been affected by the case as his newfound value still remains estimated at more than $60 billion.
It remains to be seen what the Binance co-founder’s next venture will be, especially after he was banned from taking any leadership role at the exchange. However, it is worth noting that Zhao promised in his parting message to remain a “passive investor and holder” in crypto.
Furthermore, before his sentencing, CZ revealed plans to… educational platform called Giggle Academy. Giggle Academy aims to make primary education free and accessible to underprivileged children around the world.
BNB price rallies following CZ's release | Source: daily BNBUSDT chart on TradingView
Featured image of Binance, chart from TradingView