Changpeng "CZ" Zhao, the founder and former CEO of Binance, has been released from a U.S. federal prison on September 27, after serving a four-month sentence for violating anti-money laundering (AML) regulations. According to the U.S. Federal Bureau of Prisons, CZ had pled guilty to charges of failing to implement proper AML controls at Binance, the worldâs largest crypto exchange by daily trading volume. He also stepped down as CEO.
Initially, the U.S. Department of Justice (DOJ) sought a 36-month sentence, but the court reduced it to four months after determining that CZ wasnât directly aware of illegal activities at Binance. He also agreed to pay a $50 million fine, while Binance itself was hit with $4.3 billion in penalties for AML violations.
CZ spent two months in a minimum-security prison in California before being moved to a halfway house in Long Beach, where he was allowed supervised daytime outings. While CZ no longer runs Binance, the company continues to thrive under new leadership, surpassing 230 million users worldwide.
With an estimated net worth of $60 billion, CZ is the richest person to serve time in a U.S. prison. His personal wealth remains largely unaffected, and he still holds a 90% stake in Binance. The crypto community is now eager to see what CZâs next move will be after his release. Binance, meanwhile, continues to dominate the global cryptocurrency landscape.
