Changpeng Zhao, the former leader and co-founder of Binance, was released from custody on Friday, two days earlier than scheduled, as reported by Bloomberg.
Zhao, commonly known as CZ, was sentenced to four months in prison in April after pleading guilty to failing to maintain an effective anti-money laundering program. He was also fined $50 million, while Binance agreed to pay $4.3 billion, marking one of the largest corporate settlements in history.
A spokesperson for the Federal Bureau of Prisons declined to provide specific details regarding Zhao's release, citing privacy and security concerns. According to their policy, inmates can be released early if their scheduled release date falls on a weekend or holiday.
The U.S. Department of Justice initially sought a longer imprisonment of 36 months, alleging that Zhao knowingly violated laws for personal and corporate gain. Zhao's lawyers stated that he accepted responsibility for his actions and expressed regret, requesting probation instead.
Zhao has been succeeded by Richard Teng, the former Abu Dhabi regulator, who is steering Binance towards enhanced regulatory compliance, referred to as “Binance 2.0.” Despite his release, Zhao will not participate in the daily operations or decision-making at Binance, although he remains the largest shareholder with an estimated 90% stake.
Binance is still facing a separate lawsuit from the U.S. Securities and Exchange Commission (SEC) for various allegations, including misleading customers and operating as an unregistered exchange. Under Teng's leadership, Binance has adopted a board-led structure and is focused on regulatory compliance.
Before his incarceration, Zhao announced plans to establish an educational platform called Giggle Academy, aiming to provide quality education to underprivileged communities globally. A Binance spokesperson expressed delight over Zhao's return home and emphasized the company's growth, which now boasts over 230 million users worldwide.
