Binance Founder Changpeng ‘CZ’ Zhao Released Early from Prison

Binance founder Changpeng "CZ" Zhao has been released from prison, according to the U.S. Bureau of Prisons (BOP). He was initially set to be released this Sunday, September 29, but was let out two days early, as BOP rules allow for early releases when the date falls on a weekend or holiday.

Zhao had been serving a four-month sentence for violating the Bank Secrecy Act (BSA). The charge stemmed from his failure to set up a proper "know-your-customer" (KYC) system at Binance. As part of his guilty plea, Zhao agreed to pay a $50 million fine and step down as CEO. Binance also settled with U.S. regulators by paying $4.3 billion in fines.

While prison sentences for BSA violations are uncommon, Zhao's four-month sentence was lighter than the three years federal prosecutors wanted. This was likely due to his clean record and strong reputation, supported by 161 letters from friends, family, and colleagues.

Zhao served most of his time at Lompoc II, a low-security prison in California, before being transferred to a halfway house in San Pedro in August. With a net worth of $25.3 billion, he is believed to be the richest person ever to serve time in a U.S. prison.

Zhao and his team have not made any public comments despite his release.

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