Binance’s Founder, Changpeng Zhao is a Free Man
Binance founder Changpeng “CZ” Zhao was released from prison two days earlier than scheduled due to a federal policy allowing early releases if the original date falls on a weekend or holiday. Zhao had been serving a four-month sentence after pleading guilty in April to violations of the Bank Secrecy Act (BSA), specifically for failing to implement a proper Know Your Customer (KYC) system at Binance.
As part of his plea agreement, Zhao paid a $50 million fine and agreed to step down as CEO of Binance. In addition, the exchange itself was fined $4.3 billion to settle related charges with U.S. regulators.
Zhao’s sentence was considered lenient compared to the three years sought by prosecutors. U.S. District Judge Richard Jones, of the Western District of Washington, took into account Zhao’s clean criminal record and positive reputation, supported by 161 letters from his peers, family, and colleagues.
After spending three months in Lompoc II, a low-security prison in California, Zhao was transferred in August to a halfway house in San Pedro, California. His early release from the halfway house marks the official end of his prison term.
Zhao’s early release could potentially have a positive impact on the cryptocurrency market, given his prominence in the industry.
