Binance founder CZ walks free from US prison

Alex O’Donnell3 hours agoBinance founder CZ walks free from US prisonHe served four months in federal prison for charges including alleged violations of United States Anti-Money Laundering rules.1075 Total views9 Total sharesListen to article 0:00Breaking newsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onBinance founder and former CEO Changpeng “CZ” Zhao walked free from a United States federal prison on Sept. 27 after serving a four-month stint for Anti-Money Laundering (AML) violations, a spokesperson for the United States Federal Bureau of Prisons told Cointelegraph.

CZ pled guilty in November to federal charges for failure to implement proper AML controls at Binance, the world’s largest cryptocurrency exchange in terms of daily trading volumes, according to a Nov. 21 statement from the US Department of Justice. He also stepped down as Binance’s CEO.

With a reported net worth of approximately $60 billion, CZ is the wealthiest person ever to serve a prison sentence in the US.CZ served four months in a US prison. Source: Cointelegraph

Related: Binance CEO says CZ is banned from managing or operating the exchange

In April, CZ agreed to return to the US from Dubai to serve his four-month sentence. He spent the first two months in a minimum security prison in southern California before relocating to a halfway house in Long Beach, where he was allowed supervised daytime excursions, according to a Sept. 26 Fortune report.

“We are delighted that CZ will be home with his family,” a spokesperson for Binance told Cointelegraph, adding:“While he is not managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to thrive under the leadership of our current team, surpassing 230 million users globally.”An excerpt from a US sentencing memorandum against Binance founder Changpeng Zhao filed on April 23. Source:Bwbx.io

Related:CZand Binance face new lawsuit for alleged laundering of stolen crypto

CZ’s four-month sentence was a significant reduction from the 36 months in prison the DOJ originally sought to “reflect the seriousness of the offense.”

According to an official statement by the US Department of Justice, CZ’s guilty plea included not only AML violations but also unlicensed money transmitting and sanctions violations.

“Zhao knew that his decision not to implement an effective AML program would result in Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions in violation of US law,” the prosecutors wrote in the sentencing memo.

During the hearing on April 30, Seattle district court Judge Richard Jones justified his decision on the four-month sentence by stating that there wasno evidence that CZ had been informed of any illegal activities at Binance.

CZ agreed to pay a $50 million fine as part of his case in the US in November last year, while Binance also paid $4.3 billion in penalties for breaking US AML laws. However, CZ’s personal fortune has not been affected by the case. 

The Binance founder continues to hold a majority stake in Binance, reportedly estimated to hold 90% in the exchange.

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