Changpeng Zhao, the co-founder of the cryptocurrency exchange Binance, is scheduled to be released from U.S. custody on September 29, according to information from the U.S. Federal Bureau of Prisons. Currently serving a four-month sentence, Zhao has been transferred to the Long Beach Residential Reentry Management facility in California.
Zhao’s legal troubles began in late 2023 when he and Binance entered guilty pleas related to violations of U.S. anti-money laundering laws. As part of a settlement with authorities, Binance was ordered to pay a staggering $4.3 billion in fines, while Zhao himself agreed to a $50 million penalty and stepped down from his role as CEO.
The U.S. Department of Justice had initially sought a more severe sentence of three years for Zhao, citing the severity of his actions in enabling large-scale money laundering activities through Binance. However, Judge Richard Jones ultimately imposed a shorter term, reflecting mitigating factors such as Zhao’s character and lack of direct knowledge regarding the illegal activities.
As Zhao prepares for his release, speculation surrounds his potential return to the cryptocurrency sector and how it might impact Binance and its native token, BNB. Despite his legal challenges, Binance continues to operate amid ongoing scrutiny from regulators.
