Changpeng Zhao, the founder and former CEO of the world’s largest cryptocurrency exchange, has completed his four-month prison sentence and was released from custody on Friday. Although he has stepped down as the chief executive of Binance, he remains the largest stakeholder.
Recall the events that took place almost a year ago when the US Department of Justice announced a massive $4.3 billion settlement with the then-CZ-led exchange. This came after years of investigations by different entities, and Binance, along with its founder, pled guilty to willfully violating the Bank Secrecy Act. Zhao’s guilty plea was for failing to implement a robust anti-money laundering (AML) program. He had to step down as the CEO of Binance and paid a $50 million penalty.
In late April, CZ was also slapped with a four-month prison sentence, which was significantly less than the requested three years. At the time, he said:
> “I will do my time, conclude this phase, and focus on the next chapter of my life (education). I will remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is super important. A silver lining of this whole process is that Binance has been under the microscope. And funds are SAFU. Protect users!”
His sentence was supposed to end on September 29, but since it falls on a Sunday, he was released on the last working day before the weekend – Friday.
Binance’s native token performed well during this week when CZ was supposed to be released. It’s up by 6% on a seven-day scale and sits well above $600. According to some reports, Zhao still owns about 64% of BNB’s total supply.
CZ has previously mentioned his plans following his release from prison. Called Giggle Academy, the project aims to provide free education in a gamified and adaptive manner.
Twitter text: Changpeng Zhao, Binance’s founder, is out of custody after serving his four-month sentence. Despite stepping down as CEO, he’s still the largest stakeholder. Exciting times ahead with his new venture, Giggle Academy! #Crypto #Binance
