Binance’s former leader and co-founder Changpeng Zhao was reportedly released on Friday, two days earlier than scheduled. bloomberg.
Zhao, also known by his initials CZ, sentenced He was sentenced to four months in prison in April this year after pleading guilty last year to failing to maintain an “effective anti-money laundering programme”. Zhao was fined $50 million, and Binance agreed to pay $4.3 billion, one of the largest corporate settlements in history.
A Federal Bureau of Prisons spokeswoman declined to provide specific information about Zhao’s release.
“For privacy, safety and security reasons, we do not discuss conditions of confinement, reasons for transfer or specific release plans for incarcerated individuals,” a spokesperson said in a statement to The Block.
The spokesperson also pointed out the following: policy statement “With exceptions, a prison may release an inmate on the last day of the week when the release date falls on a Saturday, Sunday, or statutory holiday,” it states.
The U.S. Justice Department had sought a much longer prison term of 36 months for Zhao, claiming he knowingly violated the law for the company’s and his own benefit. On the other hand, Zhao’s lawyers said the former chief accepted responsibility and “deeply reflects” on his crimes and asked the court for probation.
Zhao was replaced by former Abu Dhabi regulator Richard Teng, who led Binance to invest heavily in regulatory compliance in what he calls “Binance 2.0.”
Cryptocurrency exchanges still face challenges. separate lawsuit From the U.S. Securities and Exchange Commission. The SEC sued cryptocurrency exchanges Binance Holdings and Zhao last year.sending messages to customers, restricting access to Binance.com by U.S. investors, misdirecting capital to segregated investment funds owned by Zhao, and operating as an unregistered exchange.
“We have taken a very different turn from when CZ was CEO. Binance now has a completely different corporate structure. It is a board-led structure,” Teng said at Korea Blockchain Week in Seoul, South Korea earlier this month. “Of course, CSN retains its rights as a shareholder, but we work very closely with the board on a daily, ongoing basis in terms of our global strategy.”
Binance’s current head of regional markets, Vishal Sachandreen, also spoke to The Block. previous interview Zhao will not be involved in Binance’s decision-making.
Nonetheless, Zhao remains Binance’s largest shareholder, owning about 90% of the world’s largest cryptocurrency exchange.
Meanwhile, before his imprisonment, Zhao promised to build an educational platform called Giggle Academy to provide high-quality education to underprivileged people around the world.
“We are happy that CZ is home with his family,” a Binance spokesperson said in a statement to The Block. “Although he no longer manages or runs Binance, we look forward to seeing what he does next. Since last year, Binance has continued to grow under the current team’s leadership, including surpassing 230 million users globally. We are proud that we have grown and will continue to lead the industry responsibly.”
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