Changpeng Zhao, the founder of cryptocurrency exchange Binance, is set to be released from custody on September 29, according to the U.S. Bureau of Prisons website.
Zhao, also known as inmate 88087-510, will be freed after serving a four-month sentence at Lompoc II, a low-security prison in California, followed by a brief stint in a halfway house in San Pedro, California. The facility, which houses around 2,160 inmates, offers different conditions from the notoriously harsh New York prison where former FTX CEO Sam Bankman-Fried is serving his 25-year sentence.
Zhao was sentenced in April after pleading guilty to violating the Bank Secrecy Act by failing to implement KYC programs at Binance. Along with his guilty plea, he agreed to pay a $50 million fine and step down as CEO of the exchange. Zhao spent three months at Lompoc II before his transfer in late August.
Richard Teng, a former regulator from Abu Dhabi and Singapore, took over as CEO following Zhao’s resignation. Binance itself was also criminally charged with violating U.S. sanctions and money-transmitting laws and agreed to pay $4.3 million to settle those charges.
A federal judge sentenced Zhao, a Canadian citizen known by his initials CZ, in April to a term shorter than the three years sought by prosecutors but longer than sentences received by other crypto executives for similar offenses.
Before reporting to prison, Zhao indicated plans to work on a writing project while incarcerated. Despite online speculation, there is no evidence suggesting that Zhao was “free” following his transfer, and the BOP website continues to list his release date as September 29.
The sentence makes Zhao, with a net worth of $36.5 billion according to Bloomberg, potentially the richest person ever incarcerated in the United States. He was also fined $50 million and resigned as Binance CEO.
