Binance founder Changpeng Zhao has been released from US jail. Zhao was released after serving a four-month sentence at a low-security correctional facility in California. Earlier this year, the Binance founder was sentenced after a US investigation discovered that the world’s largest cryptocurrency exchange had failed to stop widespread criminal activity. Zhao pleaded guilty to charges brought by the US Department of Justice and paid a criminal fine of $50 million as well as a $50 million penalty to the US Commodity Futures Trading Commission along with relinquishing his executive role at Binance.The company also faced an even steeper penalty, settling with the US government for a staggering $4.3 billion, marking one of the largest corporate fines in the country’s history.
Read the company’s statement here
In its Binance Square blog post, the company wrote:
“Changpeng “CZ” Zhao, the founder and former CEO of Binance, has been released from a U.S. federal prison on September 27, after serving a four-month sentence for violating anti-money laundering (AML) regulations. According to the U.S. Federal Bureau of Prisons, CZ had pled guilty to charges of failing to implement proper AML controls at Binance, the world’s largest crypto exchange by daily trading volume. He also stepped down as CEO.
Initially, the U.S. Department of Justice (DOJ) sought a 36-month sentence, but the court reduced it to four months after determining that CZ wasn’t directly aware of illegal activities at Binance. He also agreed to pay a $50 million fine, while Binance itself was hit with $4.3 billion in penalties for AML violations.
CZ spent two months in a minimum-security prison in California before being moved to a halfway house in Long Beach, where he was allowed supervised daytime outings. While CZ no longer runs Binance, the company continues to thrive under new leadership, surpassing 230 million users worldwide.
With an estimated net worth of $60 billion, CZ is the richest person to serve time in a U.S. prison. His personal wealth remains largely unaffected, and he still holds a 90% stake in Binance. The crypto community is now eager to see what CZ’s next move will be after his release. Binance, meanwhile, continues to dominate the global cryptocurrency landscape.”
What US alleged against Binance and Zhao
US prosecutors accused Binance of promoting a business model that attracted criminals and facilitated illegal activities. They alleged that Binance failed to report over 100,000 suspicious transactions linked to designated terrorist organisations and that the exchange even supported the sale of child sexual abuse material. Additionally, they alleged that Binance profited from ransomware attacks by receiving a significant portion of the proceeds.
However, he is still the 25th richest person in the world with a net worth of $61 billion and retains nearly 90% stake in Binance, reports Forbes.
This post was originally published on this site be sure to check out more of their content.
