Binance Founder CZ Set for Prison Release

Former Binance CEO Changpeng Zhao, also known as CZ, is scheduled to be released from prison on Friday evening after spending the last four months incarcerated in the United States.

CZ was sentenced in April after pleading guilty to violating the Bank Secrecy Act (BSA), a set of laws and regulations intended to prevent money laundering. The ruling came alongside a $50 million fine. CZ has an estimated net worth of $60 billion.

Despite the money-laundering accusations, Binance, the largest crypto exchange in the world, retains a 24% market share compared to other centralized exchanges (CEXs). The CEX processed $15 billion in volume over the last 24 hours, nearly triple its closest competitor, Crypto.com, which recorded $6 billion, according to Messari.

Binance Holdings Limited also pleaded guilty in November 2023 to accusations of unlicensed money transmitting, money laundering, and sanctions violations, resulting in a $4 billion fine that resolved the U.S. Justice Department's investigation of the BSA violations.

During the trial, Attorney General Merrick B. Garland said, "Binance became the world's largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history."

"Changpeng Zhao made Binance, the company he founded and ran as CEO, into the largest cryptocurrency exchange in the world by targeting U.S. customers, but refused to comply with U.S. law," said Acting Assistant Attorney General Nicole M. Argentieri.

CZ is forbidden from returning to Binance.

Zhao and Binance are set to face a class action lawsuit filed against them on August 20. Bill Hughes of Consensys summarized the accusations: "These plaintiffs and the class of US consumers they represent had their crypto stolen in hacks and other thefts, and those funds were sent to Binance for laundering, which Binance was aware of and to some extent encouraged as its lucrative business model."