Changpeng “CZ” Zhao, the founder and former CEO of Binance, was released from a U.S. federal prison on September 27 after completing a reduced four-month sentence. He had been convicted of violating Anti-Money Laundering (AML) laws, according to the U.S. Federal Bureau of Prisons.
CZ, who has a reported net worth of $60 billion, is the wealthiest individual to ever serve time in a U.S. prison. He pled guilty in November to charges that Binance, the world’s largest cryptocurrency exchange, failed to implement proper AML controls. Originally facing a potential 36-month sentence, CZ’s prison time was cut down to just four months by a Seattle district judge.
In April, CZ agreed to return to the U.S. from Dubai, spending two months in a minimum-security prison before being transferred to a halfway house in Long Beach. Although he has stepped down as Binance’s CEO, the company continues to grow under new leadership, reaching over 230 million users globally.
The U.S. Department of Justice (DOJ) revealed that CZ’s guilty plea also covered charges of unlicensed money transmitting and sanctions violations. Despite the legal issues, CZ paid a $50 million fine, and Binance itself was hit with $4.3 billion in penalties. However, his personal fortune and majority stake in Binance remain largely unaffected.
This case stirred controversy, with critics pointing out the leniency in CZ’s sentence compared to the serious nature of the offenses. Nonetheless, CZ is now free, leaving the crypto world wondering about his next move.