Changpeng “CZ” Zhao, the founder of Binance, has been released from U.S. custody after completing a four-month prison sentence.

Zhao was detained for failing to implement adequate Anti-Money Laundering (AML) controls at Binance, which allowed illegal transactions involving cybercriminals and terrorist groups. Zhao’s case was a result of Binance’s significant legal struggles in the U.S. and led to the company paying $4.3 billion in fines to settle AML and sanctions violations​.

The U.S. Department of Justice originally sought a 36-month sentence, but a Seattle district court judge reduced this to four months, citing the need for a sentence that was both “appropriate and reasonable.” Zhao, who is also the wealthiest person to serve time in U.S. prison, paid a $50 million personal fine in addition to Binance’s settlement​.

Following his release from a California correctional facility, Zhao was transferred to a halfway house in Long Beach, California, where he spent the last two months of his sentence. He has since stepped down from his role as Binance’s CEO, with Richard Teng and co-founder Yi He now leading the company. Despite his legal battles, Binance remains a dominant force in the crypto market, serving over 230 million users globally.

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