Binance founder Changpeng Zhao was released from a California correctional facility on Friday after being held in federal custody for failing to take appropriate action, allowing cybercriminals and terrorist groups to trade freely on the world's largest cryptocurrency exchange.
Changpeng Zhao, 47, pleaded guilty in November to failing to implement adequate anti-money laundering controls at Binance. The exchange was launched in 2017 and has quickly grown into one that handles trillions of dollars worth of transactions every year. Bureau of Prisons spokesman Scott Taylor confirmed that Zhao Changpeng was released from a halfway house in Long Beach, California, on Friday. In June this year, he reported to a low-security prison to serve a four-month sentence.
Previously, Zhao Changpeng also agreed to pay a personal fine of US$50 million. Binance paid a $4.3 billion fine to settle a series of charges related to violations of anti-money laundering and sanctions laws. As part of the settlement, Changpeng Zhao resigned as CEO of Binance and is prohibited from holding executive positions at the company.
Even with the turmoil, Binance remains one of the most important cryptocurrency exchanges. It is estimated that Changpeng Zhao's net worth is still around US$30 billion.