By Adedapo Adesanya
Jailed co-founder of Binance, Mr Changpeng Zhao, known as CZ, is set to be released from a US prison on September 29.
This is according to the US Federal Bureau of Prisons website.
Mr Zhao is currently serving a four-month sentence and was recently transferred to the Long Beach Residential Reentry Management (RRM) facility in central California.
Mr Zhao had in November 2023 alongside Binance pleaded guilty to breaking US federal laws.
The allegations included Mr Zhao’s failure to implement an effective anti-money laundering program, as required by the Bank Secrecy Act.
It was also alleged that Binance had processed transactions linked to unlawful activities, including those between US citizens and individuals in sanctioned regions like Iran.
As part of the settlement, Binance was ordered to pay $4.3 billion in fines, while Mr Zhao personally agreed to pay $50 million.
The businessman also stepped down as Binance’s CEO but retains an estimated 90 per cent ownership in the company.
Regardless of this, Binance still continues to face issues, including in Nigeria and the US.
The US Securities and Exchange Commission (SEC) recently filed an amended complaint against the exchange, reiterating its accusation that the exchange violated federal securities law.
The SEC claimed that Binance plays a key role in the crypto market by republishing and amplifying information from issuers and promoters. The filing also alleged that Binance promotes digital assets it lists and trades by sharing details on asset development, trading volumes, and price information.
Furthermore, the financial regulator reaffirmed its stance that Binance’s token (BNB) was offered and sold as a security.
It also highlighted the expectation among customers, employees, and investors that BNB would increase in value due to efforts by issuers and promoters.
This comes despite a previous court decision dismissing charges related to the secondary sale of BNB by third parties.
In Nigeria, the Economic and Financial Crimes Commission (EFCC), the country’s anti-graft agency accused Binance of money laundering and tax evasion in its charges.
It also stated that the exchange played a key role in the devaluation of Nigeria’s local currency after it facilitated over $26 billion in illegal cross-border transfers.
The country also detained two executives, Mr Tigran Gambaryan and Nardeem Anjarwalla, after honouring an invitation by the Nigerian government seven months ago. Mr Anjarwalla later escaped custody in June using a second passport.
Binance has since delisted the Naira from its support but the platform is still very much active in Nigeria as most Nigerians use it as a wallet to house their assets and also trade.
