Binance founder Changpeng Zhao released after 4 months jail term
Binance founder Changpeng Zhao has since been released after four months in prison. He served a four-month sentence for violating anti-money laundering procedures on his exchange before being released from a California correctional facility.
After agreeing to a larger settlement with US authorities that included a $50 million personal fine, Changpeng Zhao, also known as CZ, reported to the facility in June. In a different deal, Binance paid $4.3 billion in fines to resolve allegations of breaking sanctions and anti-money laundering laws.
Zhao’s legal troubles
Zhao's legal issues started in 2021, when international regulators looked more closely at the exchange's operations.
Authorities charged the company with operating without the required license, managing an unlicensed securities exchange, not adhering to anti-money laundering (AML) regulations, and encouraging illicit trading activities. Financial authorities from a number of nations, including the Financial Services Agency of Japan and the Financial Conduct Authority of the United Kingdom, issued warnings about Binance due to its decentralized nature and expansive operations.
The U.S. Commodity Futures Trading Commission (CFTC) launched legal action against Binance in March 2023, alleging that the company had broken federal law in the United States by permitting residents to trade cryptocurrency derivatives without the required registration. Additionally, the CFTC claimed that Zhao's leadership of the exchange resulted in inadequate Know Your Customer (KYC) and AML procedures, which may have assisted in the facilitation of illegal activity.
Why Binance founder was released two days earlier than expected
CZ official sentence was supposed to end on Sunday; however, prisoners whose official release date falls on a weekend or holiday may be released on the last working day of the week, provided that there are no exceptional circumstances that call for their continued detention.
Binance founder steps down as CEO
After a conviction in 2024, Zhao faced hundreds of millions of dollars in fines and severe restrictions on his ability to continue working with Binance and the cryptocurrency industry.
After the settlement was reached, Zhao was prohibited from holding any executive position within the company and had to step down as CEO of Binance.
CZ to focus on family and charity
Zhao has hinted about focusing on family and charity. He has previously revealed plans to launch Giggle Academy, an online learning platform that will provide underprivileged kids with free educational materials, as a post-Binance project.
Although there are currently few details known about the project and it is still in its early stages, he intends to use his wealth to support global charitable endeavors.
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