Binance’s former CEO Changpeng Zhao is now free after his incarceration in a California prison.
Key Notes
- Changpeng Zhao is finally free from California prison.
- He got an early release because his due date was Sunday, September 29.
- With his freedom, CZ, as he’s called, will not return to lead Binance.
Former Binance CEO Changpeng ‘CZ’ Zhao can finally heave a sigh of relief for the first time in four months. The crypto pioneer was released today after serving his jail term, which began in July at the Federal Correctional Institution in Lompoc, California. He got out earlier than his expected release date, slated for Sunday, September 29, 2024.
However, a Federal Bureau of Prisons rule allows inmates to get an early release if their date falls on a weekend or a legal holiday. This is the situation in CZ’s case, as his release was scheduled for Sunday. Once out of prison, he boarded a private jet that flew him to reunite with his family.
Binance Founder’s Journey in the Last Four Months
Last year, Changpeng Zhao got caught up in the Binance legal fiasco. He was charged for the role he played in enabling Binance to breach federal sanctions and Anti-Money Laundering (AML) regulations. The United States Department of Justice (DOJ) was keen on ensuring he got a sentence of at least 3 years imprisonment. In its filing, the agency highlighted that,
“….Zhao failed to implement an effective AML program at Binance, illicit actors used Binance’s exchange in various ways, including operating mixing services that hid the source and ownership of cryptocurrency,” hence the request for such a tough sentence.
However, the Binance Founder’s legal team requested probation, citing that he was a first-time and non-violent offender. Fortunately for CZ, he received a “lenient” four-month jail term on April 30. According to an earlier report from Coinspeaker, he did not resume his sentencing immediately due to formalities in the justice system, the Fifth Amendment, and the efforts of world-class lawyers.
In June, he found his way to the low-security federal correctional institution Lompoc II, where he remained until last month. As a preparation for his release this September, Zhao was moved to a Residential Reentry Management (RRM) Long Beach halfway house in Southern California. His release today has sparked a lot of excitement in the crypto ecosystem.
What Next for Changpeng Zhao?
Many netizens wonder what would become of Changpeng Zhao now that he is out of jail. Apart from running Giggle Academy, the educational initiative he launched before going to prison, only a little is known about his plans. However, one thing is certain: He will not return to lead Binance.
He was permanently barred from operating or running the exchange as part of his punishment. Some Binance community members speculated whether the move was classified as a “consideration” for prosecutors as part of Binance’s remedial measures rather than a legal necessity.
However, Richard Teng, the current CEO of the exchange, clarified that the ban was for life.
While the 47-year-old businessman was away, Binance achieved some milestones, including structural shifts. The crypto exchange made its first foray into the Play-to-Earn (P2E) niche with the launch of Moonbix, a crypto-themed Telegram Mini App game.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
