Binance founder Changpeng Zhao, commonly known as CZ, will be released from prison on Sept. 29.
Zhao, 47, was sentenced to four months in prison for violations of U.S. anti-money laundering and sanctions regulations. He is currently being held at a low-security federal prison in San Pedro, California.
According to the U.S. Federal Bureau of Prisons website, Zhao is set to be released from U.S. custody on September 29.
Zhao’s legal troubles
Zhao’s legal troubles began in November 2023 when he and Binance (BNB) pleaded guilty several charges related to the company’s operations. These included facilitating transactions for countries under U.S. sanctions, including Iran and Cuba. The charges primarily related to money laundering.
As part of a settlement with the U.S. government, Binance was ordered to pay $4.3 billion in fines, while Zhao personally paid a $50 million fine and agreed to step down as CEO.
U.S. prosecutors initially sought a three-year prison sentence for Zhao, arguing that the violations enabled large-scale money laundering. However, U.S. District Judge Richard Jones opted for a more lenient sentence, concluding that there was insufficient evidence proving Zhao had direct knowledge of the illegal activity. Jones also cited Zhao’s history and character as mitigating factors, leading to the significantly reduced sentence.
Despite the legal challenges faced by Binance, the exchange continues to operate, and Zhao’s potential return to the crypto industry after his release remains a topic of discussion.
Earlier in 2024, Zhao hinted at a new platform Giggle Academy, a free educational platform for underprivileged children. Although he remains a major investor in Binance, this venture marks his move to establish a legacy beyond crypto.
Read the full article here
