Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange, was released from a correctional facility in California on Friday after serving a four-month sentence for anti-money laundering violations. Zhao, 47, had pleaded guilty to charges of failing to implement sufficient anti-money laundering protocols at Binance, allowing cybercriminals and terrorist groups to conduct illegal transactions through the platform.

Zhao's sentence followed a November plea agreement, in which he admitted to failing to maintain proper controls to prevent illicit activity on the Binance platform, which processes trillions of dollars in trades annually. The founder also agreed to pay a $50 million personal fine, while Binance was fined $4.3 billion as part of a broader settlement that addressed numerous violations of anti-money laundering and sanctions laws.

A spokesperson for the Bureau of Prisons, Scott Taylor, confirmed Zhao's release from a halfway house in Long Beach, California, after completing his sentence. Zhao had entered a low-security facility in June to begin his term. In addition to stepping down as CEO of Binance as part of the settlement, Zhao is now barred from holding any executive position at the company.

The exchange is now led by Richard Teng, a former head regulator for Abu Dhabi Global Market, while Yi He, co-founder of Binance and the mother of three of Zhao’s children, remains a key figure in the company. Binance has yet to establish a formal global headquarters, having previously identified itself as a "virtual" company.

Zhao, who maintains an estimated net worth of $30 billion according to Bloomberg, remains involved in new ventures. Prior to his sentencing, he announced the launch of Giggle Academy, a nonprofit online education platform. In a statement upon stepping down in November, Zhao indicated that he would remain active in the entrepreneurial world, expressing interest in mentoring emerging business leaders.

Bloomberg Article