Changpeng Zhao (CZ), the founder and former CEO of Binance, was released from a federal prison in the US on September 27 after serving a four-month sentence.
According to a Nov. 21 statement from the US Department of Justice, CZ pleaded guilty to federal charges in November for failing to implement adequate AML controls at Binance, the world’s largest cryptocurrency exchange, regarding daily trading volumes. Additionally, he resigned from his position as CEO of Binance.
Changpeng Zhao Walks Free from US prison
CZ consented to serve his four-month sentence in the United States by returning from Dubai in April. According to a Fortune report from September 26, he relocated to a halfway house in Long Beach after spending the first two months in a minimum security prison in southern California. He was permitted to participate in supervised daytime excursions at the halfway house.
“We are thrilled that CZ will be reunited with his family,” stated a spokesperson for Binance in an interview with Cointelegraph.
“We are eager to observe his future endeavors, even though he is not currently responsible for the management or operation of Binance.” Binance has maintained its growth under the guidance of our current team since the previous year, surpassing 230 million users worldwide.
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The 36 months of imprisonment that the Department of Justice had initially sought to “reflect the seriousness of the offense” were significantly reduced by CZ’s four-month sentence.
Changpeng Zhao’s guilty plea encompassed sanctions violations, unlicensed money transmitting, and anti-money laundering violations, per an official statement issued by the US Department of Justice.
The prosecutors wrote in the sentencing memo that “Zhao was aware that his failure to implement an effective AML program would lead to Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions, which would be a violation of US law.”
Judge Richard Jones of the Seattle district court defended his decision to impose a four-month sentence on April 30 by asserting that there was no evidence to suggest that CZ was aware of any illicit activities at Binance.
In November of last year, Changpeng Zhao consented to pay a $50 million sanction as part of his case in the United States. Additionally, Binance was required to pay $4.3 billion in penalties for violating US anti-money laundering regulations. Nevertheless, the matter has not had an impact on CZ’s wealth.
The majority stake in Binance is still held by the Binance founder, who is estimated to own 90% of the exchange.
