Binance founder and former CEO Changpeng Zhao has been released from prison after a four-month sentence in the United States.
CZ as he is formerly known was released from prison two days early as he was officially slated to be released on September 29
CZ’s official release date, September 29, happens to be a weekend so federal rules allowed Changpeng Zhao an early release from Long Beach Residential Reentry Management, per a Bloomberg report.
The former Binance CEO started his sentence in May 2024 after pleading guilty to charges of failing to enact proper anti-money laundering and sanctions during his time at Binance.
CZ luckily received a very lenient term from his presiding judge given that the United States Department of Justice has sought a three-year jail term for him.
CZ Makes First Tweet
Following his release from prison Changpeng Zhao announced his freedom to his community of 8.9 million X followers with a single tweet.
“Gm“
He commented further on his new found freedom thanking the community for their strong support during his incarceration.
gm, the food taste so good… And what a luxury to be able to have more than one piece of fruit per day! I know some of you may have a lot of questions. I won’t have all the answers. Let me chill for a bit. Then figure out the next steps. There are always more opportunities in the future than there were in the past. I want to thank everyone for your support. It meant a lot to me, and kept me strong in the darkest moments. CZ tweeted.
Backstory
Zhao and Binance Limited pleaded guilty in November 2023 to allegations of violating US Anti-money laundering and sanctions laws. He was accused of being very lax in his AML policies at Binance and authorizing transactions for countries like Iran and Cuba under US sanctions.
As part of Changpeng Zhao’s plea deal, the US government required Binance Limited to pay $4.3 billion in fines, while Zhao was personally asked to pay a $50 million fine. CZ also agreed to step down from his position as CEO of the company although he still owns a significant stake in it.
Current Binance CEO Richard Teng confirmed that Zhao has actually been banned for life from ever running Binance. However, he still retains his company shares and has the right to nominate board members and replace executives.
Changpeng Zhao remains one of the richest people in the world despite having legal issues and paying fines. His net worth according to Forbes’s latest ranking is $60.6 billion and currently holds the number 25 spot in the overall ranking.
Changpeng Zhao remains the wealthiest crypto personality in the Forbes ranking of 17 crypto billionaires.
Changpeng Zhao is a Chinese Canadian who founded the world’s largest crypto exchange and became a billionaire in it. He ran into trouble with the United States government over money laundering charges and facilitating transactions for countries under US sanctions.
Binance has faced off with various jurisdictions, especially in areas of compliance. The exchange has had a spat with India, Brazil, the US, and Nigeria and currently seeks to expand its workforce, especially in areas of compliance.
Nigeria currently has a serious issue with Binance with one of its executives detained in the country for seven months.
CZ’s official release is expected to positively affect the crypto market as we discussed in this post