Changpeng Zhao, the founder and former CEO of Binance, has been released from prison two days earlier than expected after serving a four-month sentence in the United States.
The 47-year-old was initially set to be released on September 29, but due to the weekend timing, federal regulations allowed for his early release from Long Beach Residential Reentry Management.
Zhao began his sentence in May 2024 after being indicted for failing to implement adequate anti-money laundering and sanctions measures at Binance, the cryptocurrency exchange he founded.
His sentence was notably lighter than the three years that the U.S. Department of Justice had sought.
In November 2023, Zhao and Binance pleaded guilty to violations of U.S. anti-money laundering and sanctions laws, including facilitating transactions for countries under U.S. sanctions such as Iran and Cuba.
As part of the plea agreement, Binance was required to pay a hefty $4.3 billion in fines, while Zhao personally faced a $50 million penalty and also agreed to resign as CEO of the company.
The settlement explicitly prohibits Zhao from “managing or operating” Binance, although the exact limitations of this ban are still being clarified.
Initially thought to be a three-year ban, Binance’s current CEO confirmed that Zhao has received a lifetime restriction on day-to-day management. Nevertheless, Zhao retains shareholder rights, including the ability to nominate board members and replace executives.
Despite these legal challenges and significant financial penalties, Zhao remains one of 2024’s wealthiest individuals. According to the latest billionaire rankings, he holds the 25th position with a net worth of $60.6 billion, making him the richest among 17 individuals in the cryptocurrency sector listed.
