According to a Bloomberg report, Changpeng Zhao (CZ), the co-founder and former CEO of Binance, was released from a U.S. correctional facility on Friday, September 27th. Originally sentenced to four months in prison in April 2024, CZ was expected to regain his freedom on Sunday, the 29th of September.
As reported by Bitcoinist, federal guidelines permit inmates to be released earlier if their official release date falls on a weekend. According to a policy statement from the Federal Bureau of Prisons, “The Bureau of Prisons may release an inmate whose release date falls on a Saturday, Sunday, or legal holiday, on the last preceding weekday.”
Why Was CZ In Prison For Four Months?
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In November 2023, Zhao pleaded guilty to failing to implement an effective anti-money laundering (AML) program as CEO of Binance, the world’s largest cryptocurrency exchange. Following Binance’s agreement to a corporate settlement of $4.3 billion, its former CEO faced a personal fine of $50 million.
As part of the settlement with the United States Justice Department, Zhao agreed to step down from his role as CEO and will not hold any future executive positions at Binance. Richard Teng, the former head regulator for the Abu Dhabi Global Market, replaced him.
Besides admitting to violating anti-money laundering guidelines, Zhao’s guilty plea also encompassed charges of unlicensed money transmitting and sanctions violations. Prosecutors stated in a sentencing memo that Zhao was aware his decision not to implement an effective AML program would enable Binance to facilitate transactions between U.S. users and users in sanctioned countries like Iran, violating U.S. law.
During Zhao’s hearing, prosecutors recommended a 36-month jail sentence to underscore the severity of the offense. However, Judge Richard Jones reduced the sentence to four months, citing a lack of evidence that Zhao was aware of illegal activities within his company.
What Next For The Binance Co-Founder?
As previously mentioned, Zhao agreed to pay a $50 million personal fine after pleading guilty to the charges against him. Remarkably, the case has had minimal impact on his fortune, which is still estimated to be over $60 billion.
It remains uncertain what Zhao’s next move will be, especially given his prohibition from taking any executive roles at Binance. Nevertheless, Zhao has pledged to remain a “passive investor and holder” in the cryptocurrency space.
Furthermore, before his sentencing, Zhao announced plans to establish an educational platform named Giggle Academy. Giggle Academy aims to provide free and accessible basic education to underprivileged children around the world, a mission that has garnered significant interest.
The market reacted positively to Zhao’s release, with the price of Binance Coin (BNB) experiencing a rally. This development underscores the significant influence Zhao still holds in the cryptocurrency market.
Conclusion
Changpeng Zhao’s release from prison marks a new chapter in the life of the Binance co-founder. While he faces restrictions on his involvement with Binance, his future endeavors, including Giggle Academy, promise to make a substantial impact. The cryptocurrency community will undoubtedly be watching closely to see what comes next for one of its most influential figures.
