Zhao Changpeng, founder and chief executive officer of Binance.
Credit: Reuters File Photo
By Muyao Shen and Chris Dolmetsch
Binance founder Changpeng Zhao was released from a correctional facility in California on Friday after being held in federal custody for failures that allowed cybercriminals and terrorist groups to freely trade on the world’s largest cryptocurrency exchange.
Zhao, 47, pleaded guilty in November for failing to implement an adequate money laundering program at Binance, an exchange that began in Shanghai in 2017 and ballooned to process trillions of dollars worth of trades each year. Scott Taylor, a spokesperson for the Bureau of Prisons, confirmed Zhao was released from a halfway house in Long Beach, California, on Friday. He had reported to a low-security facility in June to serve his four-month sentence.
Zhao had also agreed to pay a $50 million personal fine. Binance paid $4.3 billion in penalties to settle a case that involved a litany of alarming allegations linked to violations of anti-money laundering and sanctions laws. As part of the settlement, Zhao stepped down as Binance’s chief executive and is not allowed to have an executive role in the company.
Even with the turmoil, the trading platform remains one of the most-important crypto exchanges. Zhao’s net worth is still estimated at around $30 billion, according to a Bloomberg Wealth estimate.
Binance is now led by Richard Teng, who previously served as the head regulator for Abu Dhabi Global Market. Yi He, the mother of three of Zhao’s children and one of the co-founders of Binance, also remains an important figure at Binance. The exchange named its first board of directors in April, though it has yet to announce a global headquarters after previously characterizing itself as a virtual company.
Before Zhao’s sentencing, he announced a new endeavor called Giggle Academy, a nonprofit online education platform. When Zhao stepped down in November, he also noted in a message that he’d also be open to “being a coach/mentor” to upcoming entrepreneurs.