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Changpeng Zhao, the famous founder of the crypto exchange platform Binance, has just been freed after a reduced prison sentence. The release marks a new chapter in the turbulent history of the crypto entrepreneur, whose empire has been rocked by legal troubles in the United States.
CZ regains his freedom after his 4-month prison term
The conviction of CZ last April shook the crypto world. Found guilty of violating the Bank Secrecy Act, he received four months in prison and a personal fine of $50 million. Binance had to pay a record fine of $4.3 billion.
The case involved serious failures in Binance’s customer verification (KYC) procedures. These loopholes have allowed the platform to operate outside US regulations for years, attracting the attention of authorities.
Despite the seriousness of the charges, CZ was given a light sentence, while the prosecutors initially requested three years in prison.
Massive industry support worked in his favor: at least 161 people, including relatives and industry influencers, sent letters of support to the court. This testimony seems to have particularly influenced Judge Richard Jones in his decision.
Premature release and its consequences
The release of CZ from prison, which occurred two days before the scheduled date, can be explained by a common practice in the American prison system. The Federal Bureau of Prisons can actually release an inmate early if the release date falls on a weekend or holiday.
This early release raises questions about the future of CZ and its role in the crypto industry.
Despite his forced resignation as CEO of Binance, CZ retains a colossal fortune estimated at $25.3 billion. This legacy makes him the richest person ever to experience incarceration in the United States. So his influence in the crypto sector remains potentially considerable, even after this legal mishap.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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