Binance co-founder Changpeng Zhao to be released from US custody on Sept. 29
Binance co-founder Changpeng Zhao is scheduled to be released from U.S. custody on September 29, according to information from the U.S. Federal Bureau of Prisons. Zhao is currently serving a four-month sentence and has been transferred to the Long Beach Residential Reentry Management (RRM) facility in California. These RRM facilities function as transitional centers for inmates approaching release, collaborating with federal courts, U.S. Marshals, and local correctional facilities to manage the reintegration process.
Zhao’s Legal Issues
Zhao’s legal challenges began last November when he, along with Binance, admitted to violations of U.S. federal laws. Among the allegations was Zhao’s failure to institute a robust anti-money laundering program in compliance with the Bank Secrecy Act. Additionally, Binance was accused of facilitating transactions connected to illicit activities, including dealings involving U.S. citizens and individuals in sanctioned countries like Iran.
As part of the settlement, Binance was fined $4.3 billion, with Zhao personally responsible for a $50 million payment. Though he resigned as CEO of Binance, Zhao retains roughly 90% ownership of the company.
Ongoing Legal Struggles for Binance
While Zhao’s personal legal woes are winding down, Binance continues to face legal battles. The U.S. Securities and Exchange Commission (SEC) recently filed an amended complaint against Binance, asserting that the exchange violated federal securities laws. The SEC claims Binance plays a significant role in the cryptocurrency market by distributing information from issuers and promoters, and by promoting digital assets listed on its platform, including providing details on asset development, trading volumes, and pricing.
The SEC also reiterated its stance that Binance’s token, BNB, was marketed and sold as a security. Despite a prior court ruling that dismissed claims concerning third-party secondary sales of BNB, the financial regulator continues to highlight the expectation among investors, employees, and customers that BNB’s value would rise based on the efforts of issuers and promoters.
