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Binance Founder Changpeng ‘CZ’ Zhao Is a Free Man
Zhao, who has been in a halfway house since late August, was released on Friday.
Updated Sep 30, 2024, 8:05 p.m. Published Sep 27, 2024, 9:35 p.m.
Binance founder Changpeng “CZ” Zhao has been released from prison, according to the U.S. Bureau of Prisons (BOP).
Zhao’s release comes two days ahead of his scheduled release date this Sunday, Sep. 29. The BOP is legally allowed to release prisoners early if their release date falls on a weekend or holiday.
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In April, Zhao was sentenced to four months in prison for violating the Bank Secrecy Act (BSA) by failing to set up an adequate know-your-customer (KYC) program at Binance. As part of his guilty plea, Zhao also agreed to pay a $50 million fine and step down as CEO of the crypto exchange. The exchange agreed to pay a $4.3 billion fine to various U.S. regulators to settle related charges.
Though custodial sentences for violations of the BSA are unusual (former BitMEX CEO Arthur Hayes, who pleaded guilty to similar charges in 2022 was sentenced only to probation), Zhao’s four-month sentence was lenient compared to the three years sought by federal prosecutors.
The judge overseeing Zhao’s case, U.S. District Judge Richard Jones of the Western District of Washington, seemed to be swayed by Zhao’s squeaky-clean criminal record and positive reputation – aided by 161 letters of support from his friends, family, and colleagues.
Read more: How CZ’s ‘Good Guy’ Reputation Secured a 4-Month Prison Sentence
Zhao – formerly known as Inmate #88087-510 – served three months in a low-security prison, Lompoc II, on California’s central coast. In August, he was moved to a halfway house in San Pedro, California.
At an estimated net worth of $25.3 billion, according to the Bloomberg Billionaires’ Index, he is believed to be the richest person to ever go to prison in the U.S.
A spokesperson for Zhao declined to comment when reached by CoinDesk.
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