Changpeng Zhao pays $50 million fine, steps down as Binance CEO.
Key Takeaways
- Changpeng Zhao was released from US custody and paid a $50 million fine.
- Binance settled legal issues with a $4.3 billion payment and named its first board of directors.
Binance founder Changpeng Zhao was released from a correctional facility in California on Friday. Zhao, 47, had been in federal custody due to failures in implementing an adequate anti-money laundering program at Binance.
This allowed cybercriminals and terrorist groups to trade on the world’s largest crypto exchange. Scott Taylor, spokesperson for the Bureau of Prisons, confirmed Zhao’s release from a halfway house in Long Beach, California.
Zhao had served a four-month sentence in a low-security facility starting in June.
Additionally, Zhao agreed to a $50 million personal fine, while Binance paid $4.3 billion in penalties to settle charges related to anti-money laundering and sanctions laws violations.
Following the settlement, Zhao resigned as CEO of Binance and was barred from holding any executive role in the company.
Despite these issues, Binance remains a key player in the crypto exchange market, led by Richard Teng and co-founder Yi He. The company recently named its first board of directors but has not announced a global headquarters.