Binance founder Changpeng “CZ” Zhao has been released from a U.S. federal prison

Binance founder Changpeng “CZ” Zhao has been released from a U.S. federal prison after serving a four-month sentence for Anti-Money Laundering (AML) violations. A spokesperson from the United States Federal Bureau of Prisons confirmed his release on September 27.

CZ, who had pled guilty to federal charges in November 2023, faced accusations of failing to implement adequate AML controls at Binance, the world’s largest cryptocurrency exchange by trading volume. Following his guilty plea, CZ also stepped down from his position as CEO of Binance. 

With an estimated net worth of $60 billion, CZ is considered the wealthiest individual to have served a prison sentence in the U.S. 

The Department of Justice originally sought a 36-month prison sentence to reflect the severity of the offense. However, CZ's sentence was significantly reduced to four months. In April, he returned to the U.S. from Dubai to serve his time, spending two months in a minimum-security prison in Southern California before transitioning to a halfway house in Long Beach. There, he was granted supervised day release, according to a report from *Fortune* on September 26.

CZ’s plea agreement included not only AML violations but also charges related to unlicensed money transmission and sanctions violations. Prosecutors detailed in the sentencing memo that CZ knowingly allowed Binance to facilitate transactions between U.S. users and individuals from sanctioned regions such as Iran, breaching U.S. law.

Seattle district court Judge Richard Jones explained his decision for the lighter sentence, citing a lack of evidence indicating CZ’s direct knowledge of any illegal activities occurring at Binance.

As part of the legal resolution, CZ agreed to pay a $50 million fine, while Binance faced a much larger penalty of $4.3 billion for violating U.S. AML laws. Despite these financial penalties, CZ's personal fortune remains largely unaffected, and he continues to hold a majority stake in Binance, reportedly owning around 90% of the exchange.