- CZ was released on Friday, two days earlier than initially expected.
- Current Binance executives said CZ will not have any influence on the exchange’s decision-making.
According to Bloomberg , former Binance leader and co-founder CZ was released on Friday, two days earlier than originally planned as his official release date fell on Sunday.
CZ, also known as CZ, was sentenced to four months in prison in April for failing to maintain an “effective anti-money laundering program.” Zhao was fined $50 million and Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history .
A spokesman for the U.S. Federal Bureau of Prisons declined to provide specific information about Zhao Ziyang's release.
"For privacy and security reasons, we do not discuss the conditions of incarceration, reasons for transfer, or specific release plans for any incarcerated individual," the spokesperson said in a statement to The Block.
The spokesperson also pointed to a policy statement that "the Prison Service may release an inmate whose last working day falls on a Saturday, Sunday or statutory holiday" but there are exceptions.
The U.S. Department of Justice asked for Zhao's sentence to be increased to 36 months because they accused Zhao of intentionally violating the law to enrich the company and himself. On the other hand, Zhao's lawyers said the former CEO had taken responsibility and "deeply regretted" his crimes, asking the court to sentence him to probation.
CZ was replaced by former Abu Dhabi regulator Richard Teng, who led Binance’s massive investment in regulatory compliance, which he dubbed “Binance 2.0.”
The cryptocurrency exchange still faces another lawsuit from the U.S. Securities and Exchange Commission, which sued Binance Holdings and CZ last year, alleging that the cryptocurrency exchange defrauded customers, failed to restrict U.S. investors from accessing Binance.com, misled funds to a separate investment fund owned by CZ, and operated as an unregistered exchange.
“Compared to when CZ was CEO, our transformation has been very different, and now Binance has a completely different corporate structure, a board-led structure,” Teng said at the Korea Blockchain Week in Seoul, South Korea earlier this month. “Of course, CZ retains his shareholder rights as a shareholder, but on a daily basis, I work closely with the board to develop our global strategy.”
Binance's current regional market head Vishal Sachandreen also stated in an interview with The Block that CZ will not participate in any decision-making of Binance.
Despite this, CZ remains Binance’s largest shareholder, owning approximately 90% of the world’s largest cryptocurrency exchange.
At the same time, before going to prison, Zhao Lijian promised to establish an educational platform called "Giggle Academy" to provide high-quality education to disadvantaged groups around the world.
“We are glad that CZ is returning home to be with his family,” a Binance spokesperson said in a statement to The Block. “While he no longer manages or operates Binance, we are excited to see his next steps. Since last year, Binance has continued to thrive under the leadership of our existing team, with over 230 million users worldwide, and we are proud to continue to lead the industry responsibly.”
