One of the most influential figures in the cryptocurrency world, Changpeng Zhao (CZ), the founder of Binance, has been released after serving a four-month sentence in the U.S. Zhao was sentenced for violating anti-money laundering laws and was penalized by the U.S. Department of Justice. He served at the low-security Lompoc II correctional center on California’s central coast. Zhao was released two days before his scheduled release date, following U.S. prison policies allowing early releases before weekends.
Binance CEO Released from Prison
Zhao’s official release date was set for Sunday, September 29, but due to a policy by the Federal Bureau of Prisons (BOP), which allows early releases on weekdays if the scheduled date falls on a weekend or public holiday, Zhao walked free on Friday. This policy is enforced unless specific reasons exist to keep the inmate in custody, such as requests from other jurisdictions.
Minimal Impact on BNB Price
The cryptocurrency market anticipated Zhao’s release, leading to minimal price fluctuations for BNB, Binance’s native token. However, the crypto world is now curious about how this development will impact Binance and Zhao’s future endeavors. A Binance spokesperson commented, “We are happy that CZ can return to his family. While he will not resume operational duties at Binance, we are excited to see what he will pursue next. Over the past year, Binance has continued to grow with our current leadership team, now serving over 230 million users worldwide.”
CZ’s New Ventures
Before his imprisonment and resignation as CEO in November 2023, CZ announced a new educational platform called Giggle Academy. Aiming to provide children with fun and free learning tools, Zhao plans to dedicate more time to this project. As part of his agreement with the U.S. Department of Justice, Zhao faces a lifetime ban from serving as Binance’s CEO, but he still retains a significant shareholding and remains a key stakeholder in the company.
CZ’s Massive Wealth and Popularity
Despite his legal troubles, CZ’s wealth remains a key topic of conversation. With an estimated net worth of $60 billion, he ranks as the 25th richest person globally, even becoming the wealthiest person to serve prison. His popularity within the crypto world was evident when, shortly after his release, Zhao tweeted “gm” (good morning) to his followers on the platform X (formerly known as Twitter). The post amassed nearly two million views within just two hours, showcasing Zhao’s enduring influence.
Binance’s Legal Struggles with U.S. Regulators
Zhao’s resignation and imprisonment stemmed from Binance’s long-standing disputes with U.S. regulators. Binance was accused of violating anti-money laundering and sanctions laws, resulting in the company agreeing to a $4.3 billion settlement. Zhao personally paid $50 million in fines. Although the U.S. Department of Justice presented strong evidence that Zhao had violated laws, Judge Richard Jones of the Seattle district court considered Zhao’s ignorance of illegal activities when imposing a relatively light four-month prison sentence.
BNB Price Surges After CZ’s Release
Following CZ’s release, the price of BNB increased modestly by 1.12%, currently trading at $610.20. Analysts suggest this rise might have already been priced into the market in anticipation of Zhao’s release.
Conclusion
The crypto community eagerly watches how Zhao’s return impacts Binance and the broader market. While Binance continues to grow under its current leadership, Zhao’s future projects—especially Giggle Academy—could become significant in the industry. As always, The Bit Journal will be closely monitoring these developments.
