On September 26, according to Fortune magazine, Zhao Changpeng will step onto the streets of Long Beach, California for the first time as a free man on Friday local time.
Since April, Zhao Changpeng agreed to return to the United States from Dubai to serve a five-month sentence for failing to implement adequate anti-money laundering controls at Binance, the cryptocurrency exchange he founded. During this time, Zhao Changpeng spent about two months in a low-security prison in the California desert before being transferred to a transitional prison in Long Beach, where he was allowed to go out under supervision and even watch a movie, according to prison officials.
Now that Zhao is back in society with an estimated $60 billion in wealth (ranked 25th in the world) and his legal issues resolved, he'll have more options. Zhao did not immediately respond to a direct message asking about his plans, and his lawyer told Fortune that he did not want to be interviewed on the day of his release. Still, we can make some educated guesses about his next move.
When he is released on Friday, two days before his official release date (inmates leave prison early if their release falls on a weekend), he will likely board a chauffeur-driven car and head to a private jet in Long Beach or Los Angeles. His first stop will likely be Dubai or Paris, where his children live with their mother, He Yi, Zhao’s former lover and Binance co-founder.
In a 2023 interview with Fortune, Zhao recalled his late father’s brilliant but cold life and expressed concern about whether he had inherited some of his traits of neglecting others. Zhao may make up for lost time after his release by deciding to spend more time with his family, including his sister, son, and mother, who all testified on his behalf and on his side at his sentencing this spring.
The support of his family helped convince the judge to accept a five-month sentence that some people thought was too lenient. The judge also mentioned Zhao's "extraordinary commitment and dedication to global philanthropy." However, Zhao has not yet translated these philanthropic commitments into concrete actions. Before going to prison, he launched a project called "Giggle Academy" to create free, fun and easy-to-use learning tools for children around the world.
"In the next phase of my life, I want to provide opportunities for our young people. I am building a platform to provide free, high-quality education to underprivileged children around the world," Zhao said at his sentencing hearing.
At the moment, Giggle Academy appears to be just a website. The site has several job postings from a few months ago, but no information on the project timeline or funding sources and scope. Given Zhao Changpeng's recent situation, this is perhaps not surprising, and more details about Giggle Academy may gradually emerge in the coming months.
In addition to family and philanthropy, the now-free Zhao Changpeng may turn his attention to a third pursuit: the cryptocurrency industry, which made him a fortune and dominated for a decade.
However, in the cryptocurrency field, Zhao Changpeng faces a major dilemma: according to the criminal settlement agreement, he must resign as CEO of Binance and stay away from any "daily" activities involving the company. At the same time, the settlement agreement also requires Binance to accept two external monitors appointed by the US government to ensure compliance.
Despite these apparent limitations, the reality is that Binance no longer operates in the U.S., instead focusing on Asia and offshore markets. Even though Zhao Changpeng is no longer CEO, he is still the company’s largest shareholder, which should give him considerable influence over the company’s future direction.
In response to Zhao Changpeng's resignation, a Binance spokesperson responded: "We are very happy that Zhao Changpeng can return home to reunite with his family. Although he is no longer responsible for the management and operations of Binance, we look forward to his next plans. Since last year, Binance has continued to thrive under the leadership of the existing team, with more than 229 million users worldwide."
Finally, it is worth mentioning that Zhao Changpeng is only 47 years old, which is the prime of career for many executives, and many are just starting to serve as CEOs. All this shows that Zhao Changpeng is ready for the second life plan, and his influence in the cryptocurrency and business fields will be reflected in the next few years.
