According to United States Bureau of Prisons (BOP) reports, Changpeng “CZ” Zhao, the founder and former CEO of Binance, has been freed from jail.
Zhao was freed two days early before Sunday, September 29, which was his planned release date. When a prisoner’s scheduled release date occurs on a weekend or holiday, the BOP is legally permitted to release them early.
CZ’s Jail Story
Zhao was given a four-month prison term in April for failing to implement a sufficient know-your-customer (KYC) policy at Binance, a violation of the Bank Secrecy Act (BSA). Zhao also agreed to give up his position as CEO of the cryptocurrency exchange and pay a $50 million fine as part of his guilty plea. To resolve related accusations, the exchange consented to pay a $4.3 billion fine to multiple U.S. agencies.
Though custodial sentences for violations of the BSA are unusual (former BitMEX CEO Arthur Hayes, who pleaded guilty to similar charges in 2022 was sentenced only to probation), Zhao’s four-month sentence was lenient compared to the three years sought by federal prosecutors.
The judge overseeing Zhao’s case, U.S. District Judge Richard Jones of the Western District of Washington, seemed to be swayed by Zhao’s squeaky-clean criminal record and positive reputation – aided by 161 letters of support from his friends, family, and colleagues.
Conclusion
Zhao – formerly known as Inmate #88087-510 – served three months in a low-security prison, Lompoc II, on California’s central coast. In August, he was moved to a halfway house in San Pedro, California.
At an estimated net worth of $25.3 billion, according to the Bloomberg Billionaires’ Index, he is believed to be the richest person to ever go to prison in the U.S.
