Binance founder and former CEO Changpeng “CZ” Zhao was released from a United States federal prison on Sept. 27 after serving a four-month sentence for Anti-Money Laundering (AML) violations, according to a spokesperson for the United States Federal Bureau of Prisons who spoke to Cointelegraph.
CZ pled guilty in November to federal charges related to the failure to implement adequate AML controls at Binance, which is recognized as the world’s largest cryptocurrency exchange by daily trading volumes. This was stated in a Nov. 21 announcement from the US Department of Justice. Following his guilty plea, he also resigned from his position as CEO of Binance.
With a net worth estimated at around $60 billion, CZ is now the wealthiest individual to serve a prison sentence in the United States.
In April, CZ agreed to return to the US from Dubai to fulfill his four-month sentence. He spent the initial two months in a minimum-security prison in Southern California before moving to a halfway house in Long Beach, where he was allowed supervised daytime outings, as reported by Fortune on Sept. 26.
“We are delighted that CZ will be home with his family,” a spokesperson for Binance remarked, adding, “While he is not managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to thrive under the leadership of our current team, surpassing 230 million users globally.”
CZ’s four-month sentence was a substantial reduction from the 36 months originally sought by the DOJ to reflect the seriousness of the offenses.
The US Department of Justice stated that CZ’s guilty plea encompassed not just AML violations but also unlicensed money transmitting and sanctions violations. Prosecutors indicated that CZ was aware that his decision not to implement an effective AML program would allow Binance to facilitate transactions between US users and those in sanctioned countries.
As part of the settlement, CZ agreed to pay a $50 million fine, while Binance itself incurred penalties totaling $4.3 billion for violations of US AML laws. Nonetheless, CZ’s personal fortune remains intact, and he retains a majority stake in Binance, estimated at 90%.
