Chiara Bianchi
Changpeng Zhao, also known as CZ, co-founder and former CEO of Binance, was released from prison on Friday, two days ahead of schedule, according to Bloomberg. Zhao had been sentenced to four months in April after pleading guilty to failing to maintain a proper anti-money laundering program. Alongside his prison sentence, he was fined $50 million, and Binance agreed to pay a staggering $4.3 billion as part of the settlement.
A spokesperson for the Federal Bureau of Prisons declined to provide details about Zhaoโs release, citing privacy and security concerns. The spokesperson also referenced a policy allowing inmates scheduled for release on a weekend or holiday to be released on the last preceding weekday, with some exceptions.
The U.S. Department of Justice had initially sought a longer sentence of 36 months, accusing Zhao of deliberately violating laws for personal and corporate gain. However, Zhaoโs legal team argued that he had taken responsibility for his actions and expressed regret, seeking probation instead.
Zhaoโs leadership role has since been filled by Richard Teng, a former Abu Dhabi regulator. Under Teng’s direction, Binance has shifted focus toward stricter regulatory compliance, a strategy Teng dubbed โBinance 2.0.โ
Latest: TVL on Base Network Reaches $2 Billion for the First Time
Despite this leadership change, Binance remains under legal scrutiny, including an ongoing lawsuit from the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Binance and Zhao misled customers, failed to block U.S. investors from accessing its platform, diverted funds to entities controlled by Zhao, and operated as an unregistered exchange.
Teng, speaking at Korea Blockchain Week, emphasized that Binanceโs corporate structure has changed significantly since Zhao stepped down. While Zhao remains the majority shareholder, with an estimated 90% stake, he no longer has a direct role in the companyโs operations or decision-making. Binanceโs regional head, Vishal Sachandreen, confirmed that Zhao no longer participates in daily decisions.
Before his incarceration, Zhao had expressed plans to launch Giggle Academy, an initiative aimed at providing education to underprivileged communities globally.
A Binance spokesperson expressed the company’s support for Zhaoโs next steps, noting that while he no longer runs the exchange, Binance has continued to grow, now boasting over 230 million users worldwide. The spokesperson added, โWe are proud to continue leading the industry responsibly under our current leadership.โ
