Binance co-founder and former CEO Changpeng ‘CZ’ Zhao will be released from a United States prison on September 29. This confirmation comes from the official United States Federal Bureau of Prisons website.
CZ’s Controversial Sentencing
Judge Richard Jones sentenced the Binance founder to four months in prison. Many in the industry consider this a light sentencing. Prosecutors from the U.S. Department of Justice called for 36 months, but the judge decided otherwise after reviewing the Probation Office’s recommendations. Zhao apologized for not strictly adhering to regulatory guidelines, including the lack of Know-Your-Customer (KYC) procedures during his tenure at Binance.
Binance Founder’s Post-Prison Plans
Upon his release, Zhao’s future moves in the cryptocurrency industry remain uncertain, but he has hinted at focusing on education. After his sentencing, he stated his intent to spend time on educational projects. In March this year, despite facing trial, Zhao launched Giggle Academy, which aims to provide free basic education using gamification and an adaptive curriculum.
A Looming Legal Battle for Binance?
As reported earlier by TheCoinRise, three crypto investors have filed a class-action lawsuit against Binance and Zhao. The lawsuit, filed in the U.S. District Court for the Western District of Washington in Seattle, claims that Binance failed to prevent money laundering, resulting in the plaintiffs losing their digital assets. Binance has since appointed a new CEO, Richard Teng, who is focused on complying with regulatory laws in the countries where Binance operates.
Zhao's release from prison on September 29 marks the end of a significant chapter in both his life and Binance's story. Time will tell how his future actions will impact the cryptocurrency industry and the exchange itself.
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