Changpeng “CZ” Zhao, founder and former CEO of Binance, has been released after serving four months in prison for violating anti-money laundering (AML) laws in the United States.

According to Cointelegraph, CZ was released from a US federal prison on September 27 after serving a four-month sentence for violating anti-money laundering (AML) laws.

CZ pleaded guilty last November to federal charges of failing to implement proper AML controls at Binance, the world’s largest cryptocurrency exchange by daily trading volume. He also stepped down as CEO of Binance afterward.

With an estimated fortune of $60 billion, CZ is the richest person ever to be sentenced to prison in the US.

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— CZ BNB (@cz_binance) September 28, 2024

CZ posted on social network X on the morning of September 28

In April, CZ agreed to return to the United States from Dubai to serve his four-month sentence. He spent the first two months at a minimum-security prison in Southern California before being transferred to a correctional facility in Long Beach, where he was allowed out under supervision during the day.

“We are delighted that CZ will be returning home to his family,” a Binance spokesperson said. “While he will not be managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to grow strongly under the leadership of the current team, surpassing 230 million users globally.”

Sentence reduced

CZ's four-month sentence was significantly reduced from the 36-month sentence initially recommended by the US Department of Justice (DOJ).

According to the DOJ, CZ’s guilty plea includes not only AML violations but also unlicensed money transmission and sanctions violations. “Zhao knew that his decision to fail to implement an effective AML program would result in Binance facilitating transactions between U.S. users and users in Iran and other sanctioned countries and regions, in violation of U.S. law,” prosecutors wrote in a sentencing memo.

However, during a hearing on April 30, Seattle District Court Judge Richard Jones justified his decision to reduce the sentence, stating that there was no evidence that CZ was informed of any illegal activities at Binance.

CZ agreed to pay a $50 million fine as part of the settlement last November, while Binance also paid a $4.3 billion fine for violating U.S. AML laws. However, CZ’s personal fortune was not affected by the settlement. The Binance founder still holds a majority stake in Binance, estimated at around 90%.