🌎 Binance Founder Changpeng Zhao Freed Early from U.S. Prison

Binance Founder Changpeng Zhao Released Early from U.S. Prison

Changpeng Zhao, the founder and former CEO of Binance, has been released from prison two days earlier than scheduled after serving a four-month sentence in the United States. Originally set to be released on September 29, Zhao’s release was expedited due to federal rules allowing for an earlier date when the scheduled release falls on a weekend.

The 47-year-old began his sentence in May 2024 following an indictment for failing to implement proper anti-money laundering and sanctions regulations at Binance. The U.S. Department of Justice had initially sought a three-year term, but Zhao received a relatively lenient four-month sentence.

Background on the Case

In November 2023, Zhao and Binance pleaded guilty to violations of U.S. anti-money laundering and sanctions regulations. This included facilitating transactions for countries under U.S. sanctions, such as Iran and Cuba. As part of the plea deal, Binance was required to pay $4.3 billion in fines, while Zhao personally paid a $50 million fine. Additionally, Zhao agreed to step down from his role as CEO of the company.

Terms of the Settlement

The settlement prohibits Zhao from “managing or operating” Binance, although the specifics of this restriction remain somewhat unclear. Initially, reports suggested a three-year ban, but Binance CEO Richard Teng later confirmed that Zhao has received a lifetime ban from day-to-day management. However, Zhao retains all shareholder rights, including the ability to nominate board members and replace executives.

Zhao’s Financial Standing

Despite his legal troubles and the substantial fines paid, Zhao remains one of the richest individuals in 2024. According to Forbes’ updated billionaire list, Zhao holds the 25th spot overall with a net worth of $60.6 billion. He is currently the wealthiest person among the 17 individuals from the cryptocurrency industry featured on the list.