Changpeng Zhao, known as “CZ,” founder and former CEO of Binance, has been released after serving nearly four months in prison.
His release, which was carried out early, occurred on Friday, September 27, two days before the scheduled date of his departure.
According to several media reports, the US Bureau of Prisons (BOP) has the authority to release inmates when their release date falls on a weekend or holiday.
As reported by this media, Zhao was convicted in April to four months in prison for violating the Bank Secrecy Act (BSA). The former CEO of Binance was found guilty of failing to implement an adequate know-your-customer (KYC) program on his cryptocurrency exchange platform.
Judge Jones' lenient sentence to Zhao
Zhao served most of his sentence in a low-security prison in California before being transferred to a halfway house in San Pedro. His four-month prison sentence was considered lenient, especially considering the request from the U.S. Justice Department, which called for a three-year sentence for Zhao, or the penalty that normally carries a charge of violating the Bank Secrecy Act, of up to 10 years in prison.
However, Judge Richard Jones, who oversaw Changpeng Zhao’s case, argued that there was no evidence that CZ was aware of illegal activities at Binance. Furthermore, Zhao’s impeccable record and the support of friends and family influenced Judge Jones’ decision to hand down a lighter sentence.
According to CoinDesk, the federal judge also noted that Zhao had accepted responsibility for the charges against him, which played a major role in the leniency of his sentence.
Zhao's defense also argued that his cooperation with U.S. authorities and his guilty plea were mitigating factors that deserved consideration. So, despite the seriousness of the allegations, the judge's decision reflected a more sympathetic approach toward Zhao, who, with an estimated net worth of more than $ 30.000 million According to Bloomberg, he is considered one of the richest billionaires to have faced prison in the United States.
The impact of the release on the crypto market
Zhao’s release could have significant implications for the future of Binance and the cryptocurrency industry at large.
At the time of writing, Bitcoin, the leading cryptocurrency by market cap, has surpassed $66.000 per unit, showing a growth of almost 2% in the last 24 hours. Likewise, BNB, the native cryptocurrency of Binance's BNB Chain network, is trading at around $607, with a daily growth of 1,7%.
According to experts, Zhao's reputation as an industry leader is undeniable, so the market may be watching closely how Zhao will use his experience and knowledge in the sector after his release and how financial regulation evolves in the cryptocurrency and digital asset ecosystem.
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