Binance founder and former CEO Changpeng “CZ” Zhao has completed his four-month prison sentence in the United States and left prison on September 27.
The cryptocurrency entrepreneur has become the richest person ever to serve a prison sentence in the United States, with an estimated personal fortune of nearly $60 billion, making him the 25th richest person in the world.
“We are excited that CZ will be returning home to his family,” a Binance spokesperson told TinTucBitcoin, adding:
“While he will no longer be managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to grow under the leadership of its current team, surpassing 230 million global users.”
As new information about CZ after his release from prison is yet to be updated, it is perhaps worth looking back at the story of how one of the world's largest billionaires and cryptocurrency executives landed in prison.
What are the charges that landed CZ in prison?
Binance founder CZ was sentenced to four months in prison in April 2024 for money laundering charges.
The sentencing comes months after CZ pleaded guilty to criminal charges related to violating US anti-money laundering (AML) laws and stepped down as CEO in November 2023.
According to an official statement from the US Department of Justice, CZ's guilty plea includes not only AML violations but also unlicensed money transmission and sanctions violations.
Zhao's four-month sentence is a significant relief as the US Justice Department had originally asked for him to serve 36 months in prison to "reflect the seriousness of the crime."
“Zhao knew that his decision to not implement an effective AML program would result in Binance conducting transactions between U.S. users and users in Iran and other sanctioned countries and regions, in violation of U.S. law,” prosecutors wrote in the sentencing memorandum.
Why did the judge give a lighter sentence?
Given the Justice Department's desire to demonstrate the severity of the charges against CZ, many in the crypto community and beyond were surprised by his final four-month sentence.
During an April 30 hearing, Seattle District Court Judge Richard Jones justified the four-month prison sentence because there was no evidence that Zhao was informed of any illegal activity at Binance.
Judge Jones is also said to have commented on the large number of letters of support from CZ's friends, saying that he had never seen such a large number of favorable testimonies about a defendant.
While the crypto community rushed to speculate about CZ’s secret deal with the US government, Judge Jones stressed that CZ’s wealth and influence do not place him above the law.
CZ's 90% stake and assets in Binance remain unaffected
While CZ agreed to pay a $50 million fine as part of a U.S. settlement last November, Binance also paid a $4.3 billion fine for violating U.S. AML laws. However, CZ’s personal assets were not affected by the settlement.
Furthermore, the Binance founder still holds a large stake in Binance, estimated to be 90% of the shares in the exchange.
In 2021, CZ announced that he does not own real estate or much capital in fiat currency, saying that crypto assets account for nearly 100% of his net worth. He also publicly revealed that he sold his house in 2013 to buy Bitcoin (BTC) and start his crypto journey. According to Forbes, CZ owns 64% of the total supply of BNB (BNB), the native cryptocurrency of the Binance exchange.
