Binance founder Changpeng Zhao (CZ) is nearing the end of his four-month prison sentence for violating the Bank Secrecy Act. This news is drawing attention as Zhao faces new legal challenges.
CZ's Sentence Completion
[According to](https://www.bop.gov/inmateloc/) the U.S. Federal Bureau of Prisons website, a 47-year-old Asian man named 'CHANGPENG ZHAO' will be released on September 29, 2024, with the registration number 88087-510. While this news has not significantly impacted BNB’s price yet, it is drawing attention as Zhao faces new legal challenges.
Legal Issues for CZ and Binance
Zhao was convicted of violating the Bank Secrecy Act (BSA) due to Binance’s failure to implement adequate know-your-customer (KYC) procedures. CZ, who had reported to a federal prison in California earlier this year, received a shorter sentence than the three years the federal prosecutors initially sought.
Fines and Leadership Changes
His four-month term, handed down in April, came alongside a $50 million fine. As part of the settlement, he also stepped down as CEO of Binance. [Binance](https://coinedition.com/binance-us-appoints-former-ny-fed-chair-amidst-regulatory-challenges/) itself pleaded guilty to the charges.
With the completion of Changpeng Zhao's prison term, Binance faces new legal and financial challenges, marking a significant milestone in the company's history.
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