Changpeng Zhao, co-founder of Binance, is expected to be released from US custody on September 29, according to information from the US Federal Bureau of Prisons website.
Zhao is currently serving a four-month sentence and has just been transferred to the Longing Beach Standard Reentry Management (RRM) facility in central California.
RRMs act as liaisons between federal and local prisons, assisting prisoners awaiting release by working with federal courts, the United States Marshals Service, and local correctional agencies.
Zhao's legal issues
Zhao's legal troubles began in November when he and Binance admitted to violating US federal laws.
The charges include Zhao’s failure to implement an effective anti-money laundering program, as required by the Bank Secrecy Act. It is also alleged that Binance processed transactions related to illegal activities, including transactions between US citizens and individuals in sanctioned regions such as Iran.
In the settlement, Binance will pay a fine of up to $4.3 billion, while Zhao personally agreed to pay $50 million. Zhao also stepped down as CEO of Binance but retains an estimated 90% ownership of the company.
Binance Legal Disputes
While Zhao’s legal troubles are nearing an end, Binance’s legal troubles continue. The U.S. Securities and Exchange Commission (SEC) filed an additional complaint against the exchange in July, reiterating its allegations that the exchange violated federal securities laws.
The SEC alleges that Binance plays a key Vai in the cryptocurrency market by reposting and amplifying information from issuers and promoters. The complaint also alleges that Binance promotes the digital assets it lists and trades by Chia asset development information, volume , and pricing information.
Furthermore, the financial authority reaffirmed its stance that Binance’s BNB Token was offered and sold as a security. It also emphasized the expectation of customers, employees, and investors that the value of BNB will increase due to the efforts of the issuer and promoters.
This comes despite a previous court decision dismissing allegations related to the secondary sale of BNB by a third party.
