Key Insights
- Binance founder Changpeng “CZ” Zhao could be released from custody on Friday, two days earlier than scheduled, due to a Federal Bureau of Prisons rule.
- CZ has served nearly 116 days of his four-month sentence for violating the Bank Secrecy Act, spending time in a low-security prison and a halfway house.
SAN FRANCISCO (MarketsXplora) – Changpeng Zhao, the founder of cryptocurrency exchange Binance widely known as “CZ”, could be released from custody as early as Friday, two days ahead of his scheduled release date, according to legal experts familiar with federal prison regulations.
The potential early release stems from a U.S. Department of Justice’s Federal Bureau of Prisons rule that allows for inmates whose release dates fall on a weekend to be freed on the preceding weekday, barring any pending legal matters or security concerns.
Zhao, who was sentenced to four months in prison in April for violating the Bank Secrecy Act, has been serving his time at a halfway house in San Pedro, California since late August. He had previously spent three months at the low-security Lompoc II prison on California’s central coast.
The cryptocurrency mogul pleaded guilty to failing to implement an adequate know-your-customer (KYC) program at Binance, one of the world’s largest digital asset exchanges.
If released on Friday as speculated, Zhao will have spent 116 days in custody, slightly short of the full four-month sentence. The final decision on his release date is expected to rest with prison wardens, who have discretionary authority in such matters.
When contacted by MarketsXplora, the Bureau of Prisons did not immediately respond to requests for comment on Zhao’s potential early release.
A spokesperson for Binance expressed enthusiasm about Zhao’s impending return to his family, while clarifying his current relationship with the company.
“While he is not managing or operating Binance, we are excited to see what he does next,” the spokesperson said.
The representative also took the opportunity to highlight Binance’s continued growth, stating that the exchange has “surpassed 230 million users globally” under its current leadership team.
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