- • Binance founder Changpeng Zhao (CZ) is scheduled to be released from prison two days early on Friday evening after serving a 4-month sentence for failing to maintain an effective anti-money laundering program.
- • As part of his settlement, Zhao is barred from holding any executive or strategic role within Binance and cannot participate in the company’s day-to-day operations, including trading, marketing, or regulatory dealings.
- • Zhao also faces restrictions on engaging in activities directly related to crypto exchanges or trading services for a specified period.
Changpeng Zhao, known in the crypto world as CZ, is the founder and former CEO of Binance. He has a background in technology and previously worked at blockchain.info and OKCoin before starting Binance in 2017.
Under Zhao’s leadership, Binance quickly became one of the largest cryptocurrency exchanges globally, attracting millions of users. However, Binance’s rapid expansion often pushed the boundaries of regulation. The company operated in various jurisdictions without licenses, drawing scrutiny from regulators.
Zhao’s Legal Troubles
In 2021, global regulators began cracking down on Binance’s operations. The CFTC filed a lawsuit accusing Binance of allowing US residents to trade derivatives without proper registration. The DOJ also brought charges related to operating an unregistered exchange.
Zhao was eventually convicted in 2024, resulting in fines and strict limitations on his future crypto involvement. He was sentenced to 4 months in prison for money laundering violations.
Zhao’s Release and What’s Next
Zhao is scheduled for release on Friday, two days earlier than his official Sunday release date. Prison rules allow early weekday releases for weekend dates.
Despite being released from prison, Zhao faces major restrictions on participating in Binance and crypto activities:
- He is barred from any executive or strategic roles at Binance.
- He cannot be involved in Binance’s daily operations like trading, marketing, or regulatory dealings.
- For a period, he is banned from activities directly related to crypto exchanges or trading services.
A Binance spokesperson said the company has continued to thrive under new leadership since Zhao stepped down. It’s unclear what Zhao’s next moves will be after his release.
