Originally published on: September 27, 2024
Changpeng “CZ” Zhao, the founder and former CEO of Binance, has been released from a United States federal prison after serving a four-month sentence for Anti-Money Laundering (AML) violations. CZ, known for his leadership at the world’s largest cryptocurrency exchange, was charged with failing to implement proper AML controls, resulting in significant repercussions.
Upon pleading guilty last November, CZ stepped down as Binance’s CEO and was sentenced to four months in prison by the US Department of Justice. Despite his reported net worth of approximately $60 billion, CZ served his time in a US prison, marking a notable moment in his career.
After agreeing to return to the US from Dubai for his sentence, CZ spent the first two months in a minimum security prison in California before moving to a halfway house in Long Beach. Despite the challenges, CZ’s team at Binance expressed relief and joy over his return, emphasizing the importance of his reunion with family.
Throughout the legal proceedings, CZ faced allegations of unlicensed money transmitting and sanctions violations in addition to the AML charges. However, Seattle district court Judge Richard Jones ultimately decided on a four-month sentence due to the lack of evidence suggesting CZ’s direct involvement in illegal activities at Binance.
Despite facing a $50 million fine and Binance paying $4.3 billion in penalties for AML violations, CZ’s personal fortune remains largely unaffected. With reports indicating CZ’s majority stake in Binance, estimated at around 90%, his return from prison marks a significant turning point in the cryptocurrency industry.
Discover more about CZ’s journey and the impact of his case in our Crypto City Guide to Seattle, where his downfall and the rise of pot crypto vendors intersect.