Changpeng Zhao, the famous founder of the crypto exchange platform Binance, has just regained his freedom after a shortened prison sentence. This release marks a new chapter in the turbulent history of the crypto entrepreneur, whose empire has been shaken by legal troubles in the United States.
CZ regains his freedom after his 4 month prison sentence
CZ's conviction last April shook the crypto world. Found guilty of violating the Bank Secrecy Act, he received a four-month prison sentence and a personal fine of $50 million. Binance, for its part, had to pay a record penalty of $4.3 billion.
The affair concerned serious breaches in Binance's customer verification (KYC) procedures. These loopholes allowed the platform to operate outside of US regulations for years, attracting the attention of authorities.
Despite the seriousness of the charges, CZ received a lenient sentence, while prosecutors initially asked for three years in prison.
The massive support from the industry worked in his favor: no less than 161 people, including relatives and influential figures in the sector, sent letters of support to the court. These testimonies seem to have particularly influenced Judge Richard Jones in his decision.
Early release and its implications
CZ's release from prison, which occurred two days before the scheduled date, can be explained by a common practice in the American prison system. The Federal Bureau of Prisons may actually release an inmate early if their release date falls on a weekend or holiday.
This early release raises questions about the future of CZ and its role in the crypto industry.
Despite his forced resignation as CEO of Binance, CZ retains a colossal fortune estimated at $25.3 billion. This heritage makes him the richest person ever to experience incarceration in the United States. Thus, its influence in the crypto sector remains potentially considerable, even after this legal mishap.
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