Binance co-founder Changpeng Zhao to be released from US custody on Sept. 29 Binance co-founder Changpeng Zhao to be released from US custody on Sept. 29
Zhao's impending release comes as the US SEC filed an amended complaint against Binance.
2 min read
Updated: Sep. 16, 2024 at 6:38 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Changpeng Zhao, co-founder of Binance, is set to be released from US custody on Sept. 29, according to the US Federal Bureau of Prisons website.
Zhao is currently serving a four-month sentence and was recently transferred to the Long Beach Residential Reentry Management (RRM) facility in central California.
RRMs serve as local federal prison liaisons, assisting inmates nearing release by working with federal courts, the US Marshals Service, and local corrections.
Zhao’s legal issues
Zhao’s legal issues began in November when he and Binance pleaded guilty to breaking US federal laws.
The allegations included Zhao’s failure to implement an effective anti-money laundering program, as required by the Bank Secrecy Act. It was also alleged that Binance had processed transactions linked to unlawful activities, including those between US citizens and individuals in sanctioned regions like Iran.
As part of the settlement, Binance was ordered to pay $4.3 billion in fines, while Zhao personally agreed to pay $50 million. Zhao also stepped down as Binance’s CEO but retains an estimated 90% ownership in the company
Binance legal struggles
While Zhao’s legal troubles are nearing an end, Binance’s legal issues continue. The US Securities and Exchange Commission (SEC) recently filed an amended complaint against the exchange, reiterating its accusation that the exchange violated federal securities law.
The SEC claimed that Binance plays a key role in the crypto market by republishing and amplifying information from issuers and promoters. The filing also alleged that Binance promotes digital assets it lists and trades by sharing details on asset development, trading volumes, and price information.
Furthermore, the financial regulator reaffirmed its stance that Binance’s token, BNB, was offered and sold as a security. It also highlighted the expectation among customers, employees, and investors that BNB would increase in value due to efforts by issuers and promoters.
This comes despite a previous court decision dismissing charges related to the secondary sale of BNB by third parties.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
