Former Binance CEO Changpeng Zhao to be released from U.S. prison

Binance founder Changpeng Zhao, better known as CZ, will be released from prison on September 29.

Zhao, 47, was sentenced to four months in prison for violating U.S. anti-money laundering and sanctions regulations and is currently being held in a low-security federal prison in San Pedro, California.

Zhao is expected to be released from US custody on September 29, according to the US Federal Bureau of Prisons’ website.

Source: Federal Bureau of Prisons Zhao’s legal troubles

Zhao’s legal troubles began in November 2023, when he and Binance (BNB) pleaded guilty to various charges related to the company’s operations, including facilitating transactions for countries under US sanctions, including Iran and Cuba. The charges primarily related to money laundering.

As part of the settlement with the US government, Binance was fined $4.3 billion, while Zhao personally paid a $50 million fine and agreed to resign from his position as CEO.

US prosecutors initially sought a three-year prison sentence for Zhao, arguing that the violations enabled large-scale money laundering. However, US District Judge Richard Jones opted for a lighter sentence, concluding that there was insufficient evidence to prove Zhao had direct knowledge of the illegal activity. Jones also cited Zhao’s background and character as mitigating factors, leading to a significantly reduced sentence.

Despite the legal challenges facing Binance, the exchange continues to operate, and the possibility of Zhao returning to the cryptocurrency industry after his release remains a topic of discussion.

Zhao has hinted at a new platform called Giggle Academy, a free education platform for disadvantaged children, to launch in early 2024. While he remains a major investor in Binance, the venture marks his move to build a legacy beyond crypto.