Binance Founder Changpeng Zhao Set to be Released Soon
(Originally posted on : Crypto News – iGaming.org )
Binance founder Changpeng “CZ” Zhao, currently serving a four-month prison sentence, is set for release by the end of this month. Zhao, also known as inmate 88087-510, will walk free on September 29, according to the U.S. Bureau of Prisons. He reported to Lompoc II, a low-security prison in California, in May and spent three months there before being transferred to a halfway house in San Pedro in August.
Zhao’s Legal Battle and Guilty Plea
Zhao’s legal troubles began in April when he was sentenced to four months in prison. This came five months after he pleaded guilty to violating the Bank Secrecy Act. Specifically, he failed to establish a sufficient know-your-customer (KYC) program at Binance, a critical regulatory requirement. In addition to his prison term, Zhao agreed to pay a $50 million fine and resigned as CEO of the crypto giant.
Following Zhao’s departure, Binance appointed Richard Teng as its new CEO. Teng, a former regulator in both Abu Dhabi and Singapore, now leads the company. Besides Zhao’s charges, Binance faced criminal charges for breaching U.S. sanctions and money-transmitting laws. The company paid $4.3 million to settle those accusations.
According to the Bloomberg Billionaires’ Index, Zhao’s net worth is an estimated $25.3 billion. This makes him the wealthiest individual to have ever been imprisoned in the U.S. Despite his legal troubles, Zhao remains a towering figure in the crypto world.