Changpeng Zhao (CZ), the founder and former CEO of Binance, has been released from U.S. custody after serving a four-month sentence related to compliance failures at the cryptocurrency exchange. His sentence stemmed from a plea deal that included a $50 million fine and his resignation as CEO.
In November last year, Changpeng Zhao pleaded guilty to charges of failing to implement an adequate anti-money laundering (AML) program at Binance, which allowed misuse of the platform by cybercriminals and terrorist groups. As part of the settlement, Binance faced a $4.3 billion penalty for violating anti-money laundering and sanctions regulations. Zhao, personally, agreed to pay $50 million in fines.
Changpeng Zhao’s sentence began in June, where he served time at a low-security facility before moving to a halfway house in Long Beach, California. Despite his legal challenges, Zhao remains extremely wealthy, with Bloomberg Wealth estimating his net worth at approximately $30 billion.
In addition to stepping down as CEO, Changpeng Zhao is prohibited from holding any executive role at Binance, which is now led by Richard Teng. Binance has yet to establish a permanent global headquarters and recently appointed its first board of directors in April.
Zhao is now focused on new ventures, including Giggle Academy, an online nonprofit educational platform, and has expressed interest in mentoring aspiring entrepreneurs.
