Binance founder Zhao released from US custody, Bloomberg News reports

(Reuters) - Binance founder Changpeng Zhao was released from a correctional facility in California on Friday, Bloomberg News reported, citing a spokesperson for the Bureau of Prisons.

Former CEO Zhao was sentenced to four months in prison earlier this year, after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.

Reuters could not immediately reach the Bureau of Prisons for comment.

Prosecutors had said that Binance adopted a model that welcomed criminals and failed to report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and Islamic State.



They also said Zhao's exchange supported the sale of child sexual abuse materials and received a large portion of ransomware proceeds.

Binance agreed to a $4.32 billion penalty, and Zhao paid a $50 million criminal fine plus $50 million to the U.S. Commodity Futures Trading Commission.

Source: Investing.com