David Edwards
Changpeng “CZ” Zhao, the founder and former CEO of Binance, walked free from a U.S. federal prison on September 27 after completing a four-month sentence for violating Anti-Money Laundering (AML) laws. The release was confirmed by a spokesperson for the U.S. Federal Bureau of Prisons. Zhao, one of the wealthiest individuals to serve a prison sentence in the U.S., is estimated to have a net worth of around $60 billion.
Zhao had pleaded guilty in November to federal charges related to Binance’s failure to implement effective AML controls. The plea deal included additional violations, such as unlicensed money transmission and facilitating transactions with sanctioned countries like Iran. Initially, U.S. prosecutors sought a 36-month prison term, but his sentence was significantly reduced after Seattle District Judge Richard Jones found no evidence that Zhao was personally aware of the illegal activities at Binance.
During his sentence, CZ spent two months in a minimum-security facility in southern California, followed by time in a halfway house in Long Beach, where he was granted supervised daytime excursions. In addition to his prison term, Zhao paid a $50 million fine, and Binance was fined $4.3 billion for breaking U.S. AML laws.
Despite his release, CZ will not return to his former role at Binance, as per the terms of his plea agreement, which prohibits him from managing or operating the cryptocurrency exchange. Binance, which continues to thrive under its current leadership, now boasts over 230 million global users. Richard Teng, the newly appointed CEO, confirmed Zhao remains a major shareholder but dodged questions regarding his involvement with the company’s future operations.
In his farewell post on X (formerly Twitter), CZ acknowledged that Binance has grown beyond his leadership, saying, “Binance is no longer a baby. It is time for me to let it walk and run.” Looking ahead, Zhao has expressed interest in supporting decentralized finance (DeFi), blockchain, AI, and biotech startups, with a focus on education and mentoring young entrepreneurs.
