Changpeng 'CZ' Zhao, the founder of Binance, has been released from custody, as confirmed by the U.S. Bureau of Prisons. His release occurred two days prior to his scheduled date of September 29.
According to the BOP, prisoners can be released early if their scheduled release date falls on a weekend or holiday. In April, Zhao was sentenced to four months in prison for violating the Bank Secrecy Act by failing to implement an adequate know-your-customer program at Binance.
As part of his plea agreement, Zhao agreed to pay a $50 million fine and step down as CEO of the crypto exchange, which also agreed to pay a $4.3 billion fine to settle related charges with U.S. regulators.
Although custodial sentences for BSA violations are rare, Zhao's sentence was relatively lenient compared to the three years sought by federal prosecutors. The judge in Zhao's case seemed to consider his clean record and positive reputation, supported by 161 letters from friends, family, and colleagues. After serving three months in a low-security prison in California, Zhao was transferred to a halfway house in San Pedro, California, in August. With an estimated net worth of $25.3 billion, according to the Bloomberg Billionaires' Index, Zhao is believed to be the wealthiest individual to have been imprisoned in the U.S.
A spokesperson for Zhao declined to comment when contacted.