365Crypto
Binance Founder CZ Released After Serving Four Months in U.S. Prison
Changpeng “CZ” Zhao, founder and former CEO of Binance, was released from a U.S. federal prison on September 27 after completing a four-month sentence. His imprisonment followed a guilty plea to charges related to Anti-Money Laundering (AML) violations at Binance, the world’s largest crypto exchange by trading volume.
Guilty Plea and Fines
CZ pleaded guilty in November, admitting Binance lacked proper AML controls, and agreed to pay a $50 million fine. The U.S. Department of Justice originally sought a longer sentence, but CZ received a reduced term of four months. Binance, facing its own penalties, paid $4.3 billion for similar AML violations.
Imprisonment Details
CZ returned to the U.S. in April to serve his sentence, spending two months in a minimum-security prison in California and two months in a halfway house. Binance, meanwhile, continued to operate successfully under new leadership, with 230 million users worldwide. A Binance spokesperson expressed optimism about CZ’s future endeavors post-release.
Legal Allegations
The DOJ accused CZ of allowing Binance to process transactions involving U.S. users and individuals in sanctioned regions such as Iran. However, the court found no direct evidence that CZ was aware of these activities. Despite these legal challenges, CZ’s personal fortune remains largely unaffected, and he still holds a significant stake in Binance, with a 90% ownership of the company.
