Cryptocurrencies

Binance founder CZ released after serving prison sentence

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Binance founder Changpeng "CZ" Zhao has been released from U.S. federal prison after serving a four-month sentence related to Anti-Money Laundering (AML) violations.

According to a spokesperson for the U.S. Federal Bureau of Prisons, CZ was freed on September 27 following his incarceration for failing to implement adequate AML controls at Binance, the largest cryptocurrency exchange by daily trading volume.

In November, CZ pled guilty to federal charges, including unlicensed money transmitting and sanctions violations.

As part of his agreement, CZ stepped down as CEO of Binance and agreed to pay a $50 million fine.

Binance also paid $4.3 billion in penalties for violating U.S. AML laws.

CZ, whose net worth is estimated at $60 billion, served two months in a minimum-security prison in southern California before transferring to a halfway house in Long Beach.

During his time at the halfway house, CZ was allowed supervised daytime excursions, reports said.

A Binance spokesperson stated, "We are delighted that CZ will be home with his family. 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."

CZ's sentence was reduced from the 36 months initially sought by the U.S. Department of Justice.

Judge Richard Jones noted there was no direct evidence that CZ had knowledge of illegal activities at Binance, which led to a shorter sentence.

Despite the charges, CZ's personal fortune and majority stake in Binance, estimated at around 90%, remain intact.

His next steps following his release are currently unknown.

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