Binance founder Changpeng Zhao has finally been released after four months in a federal prison in Lompoc, California. He was released early because his release date fell on a weekend. Zhao faced legal trouble last year over allegations that he violated sanctions and anti-money laundering laws through the Binance platform. The US Department of Justice had sought a minimum three-year prison term, arguing that Binance was used to facilitate illegal cryptocurrency transactions, including through mixing services.
Zhao’s legal team won a four-month sentence, citing his status as a first-time offender and his lack of violent crime. During that time, Zhao spent time in a low-security federal facility and was then transferred to a rehabilitation center before his release.
Now that he is out of prison, Zhao will not return to the leadership of Binance, as he is permanently barred from the exchange’s operations. Instead, he will focus on other projects, such as his educational initiative Giggle Academy.