Binance founder CZ has been released from US prison.
Binance founder and former CEO Changpeng “CZ” Zhao was released from US federal prison on September 27 after serving four months for anti-money laundering (AML) violations, a spokesperson for the US Federal Bureau of Prisons said. Cointelegraph.
According to a statement issued by the US Department of Justice on November 21, CZ pleaded guilty in November to federal charges of failing to implement proper AML controls at Binance. He also stepped down as CEO of Binance.
With a net worth of nearly $60 billion, CZ is the richest person to ever serve a prison sentence in the US.
CZ served four months in an American prison. Source: Cointelegraph
Related: Binance CEO CZ banned from managing or operating the exchange
In April, CZ agreed to serve four months in prison before returning to the United States from Dubai. He spent the first two months in a minimum-security prison in Southern California before being moved to a halfway house in Long Beach, according to a Sept. 26 Fortune report.
“We are glad that CZ is home with his family,” a Binance spokesperson told Cointelegraph.
While he may not be running or managing Binance, we're excited to see what he does next. As of last year, Binance has surpassed 230 million users worldwide and continues to grow under the leadership of our current team.
Excerpt from the US sentencing memorandum filed on April 23 against Binance founder Changpeng Zhao. Source: Bwbx.io
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CZ's four-month sentence was significantly reduced from the 36-month sentence the DOJ originally sought to “reflect the seriousness of the crime.”
According to a public statement issued by the US Department of Justice, CZ's convictions include not only AML violations, but also unauthorized money transfers and sanctions violations.
“Zhao knew that his decision not to implement an effective AML program would facilitate transactions for Binance between US users and users in Iran and other sanctioned countries and regions,” prosecutors wrote in the sentencing memorandum.
At a hearing on April 30, Seattle District Court Judge Richard Jones upheld the four-month sentence, saying there was no evidence that CZ was informed of illegal activities at Binance.
CZ agreed to pay a $50 million fine in the US in November last year, while Binance paid a $4.3 billion fine for violating US AML laws. However, CZ's personal wealth was not affected by the case.
The founder of Binance continues to hold the largest stake in Binance, estimated to own 90% of the exchange.
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