Is Binance Founder CZ Really Out of Prison?
YEREVAN (CoinChapter.com) — On August 22, 2024, crypto influencer Capo set the internet on fire by tweeting that Changpeng Zhao (CZ), the Co-Founder of Binance, was released from prison. The tweet featured a serious-looking CZ stepping out of what appeared to be a black vehicle, with Capo excitedly announcing, “CZ BINANCE IS NOW OUT OF PRISON,” using red warning emojis to emphasize the point. The tweet quickly went viral, with thousands of people retweeting and celebrating the potential positive impact on Binance Coin (BNB) prices.
News CZ Release․ Source: @CapoMetaDao Skepticism Grows as Fake CZ Release Rumors Spread Across Crypto Community
Given CZ’s influence in the crypto world, many traders quickly assumed BNB’s price would surge with his release. The hype caught the attention of “Not Jim Cramer,” a parody account. The account shared a fake tweet from Jim Cramer, saying, “CZ will never get out of prison.” They labeled the situation as “Bullish.”
Bullish Fake Cramer Tweet․ Source: @cramercoin
However, as excitement grew, skepticism began to surface. A few crypto enthusiasts started questioning the legitimacy of the news, noting the lack of any official confirmation. Shortly after, CoinSeeking Insights stepped in to set the record straight, tweeting:
“Rumors are spreading that CZ from Binance has already been released. This is FALSE! His release is now scheduled for September 29.”
False CZ Release Rumors․ Source: @CoinSeeking
The misinformation spread by Capo led to confusion across the crypto community. But what’s the real story behind CZ’s status?
CZ Moved to Halfway House Amid Legal Battles, Release Set for September 29
While Capo’s tweet caused a frenzy, the reality is that CZ has not yet been fully released. According to CoinWebKo, CZ has been transferred from the FCI Lompoc II prison to the RRM Long Beach halfway house in California. This transfer is part of the standard process for inmates nearing the end of their sentence. CZ still has 38 days remaining before his scheduled release on September 29. Although he is out of the traditional prison environment, he remains in custody under less restrictive conditions.
Moreover, CZ’s legal troubles are far from over. He now faces a new lawsuit filed by three cryptocurrency traders who allege that Binance’s lax anti-money laundering (AML) and know-your-customer (KYC) practices led to the loss of their funds. The class-action suit, filed on August 16, claims that Binance’s failure to implement effective AML and KYC measures allowed criminals to launder stolen funds through the exchange, making them untraceable.
As the September 29 release date approaches, CZ and Binance will likely continue to face intense scrutiny from both the legal system and the crypto community.
BNB Spikes 3.46% Amid False Rumours of Binance Founder CZ’s Release, Stabilizes After Clarification
During the spread of the false news about CZ’s release from prison, Binance Coin (BNB) experienced a noticeable price increase. As shown in the image, the price of BNB rose to $577.09, marking a 3.46% increase in just one day. The market cap also grew by 3.40%, reaching over $84.2 billion. Trading volume surged by 12.61% to more than $2 billion in 24 hours. The price spike suggests that many investors and traders reacted positively to the initial rumors of CZ’s release, anticipating a bullish impact on BNB. However, once the news was debunked, the price started to stabilize but remained elevated compared to earlier levels in the day.
BNB Surge Amid CZ Release Rumors․ Source: CoinMarketCap
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