Billionaire Binance Founder Changpeng Zhao Slated For Prison Release On September 29
By Benzinga
Changpeng “CZ” Zhao, the founder and ex-CEO of Binance, is set to be released from prison on Sept. 29, after serving a 4-month sentence, according to information from the U.S. Federal Bureau of Prisons (BOP).
What Happened: CZ is scheduled for release from the Long Beach Residential Reentry Management (RRM) after having served his four-month sentence at the Federal Correctional Institution Lompoc, a low-security institution in California.
On Aug. 22, his location was updated to the Long Beach RRM. He was charged for allegedly failing to implement an effective anti-money laundering framework.
The BOP describes RRMs as liaisons with federal courts, the U.S. Marshals Service, and state and local corrections, assisting inmates nearing their release dates.
The sentence was part of an investigation by the U.S. Department of Justice (DOJ) into Zhao’s and Binance’s activities. In November 2023, CZ paid a $50 million fine and resigned as Binance CEO to conclude the multiyear investigation. The exchange also faced a $4.3 billion fine.
Also Read: SEC Moves To Amend Binance Lawsuit, Reinforcing Claims Of Unregistered Securities Sales
Why It Matters: Despite facing a hefty fine of $4.3 billion, CZ remained on Forbes’s Richest Crypto Billionaire List, amassing over $33 billion from Binance, as of April 2024. Binance, founded by CZ in 2017, quickly became one of the most popular crypto trading platforms globally. CZ is the wealthiest person to have ever spent time in a U.S. federal prison.
Following his sentencing for anti-money laundering violations, CZ expressed gratitude towards his supporters and announced his focus on education, initiating a project named Giggle Academy in May 2024.
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