Binance Founder Changpeng Zhao, widely known as “CZ,” will be released from prison today, marking the end of his four-month prison sentence in the United States. Zhao’s release is expected to have a significant impact on the cryptocurrency market, especially Binance Coin (BNB), as it has shown an upward trend over the past few days.
CZ Will Be Released Today
Changpeng Zhao will be released from a Long Beach, California, jail two days earlier than expected because the official release date fell on a weekend, Fortune reported. Zhao, who voluntarily returned to the United States from Dubai this year, was detained after agreeing to a plea deal for failing to implement adequate anti-money laundering measures at Binance, which he founded. His initial sentence was five months in prison, split into two months at a minimum-security facility, followed by three months at a home detention center.
Zhao has not made any public statements since his release, but through his legal team, he said he wants to spend time with his family, including his children and his ex-girlfriend He Ye, who is also a senior executive at the cryptocurrency exchange. Zhao’s defense is that character references from his family played a large role in his sentence and he plans to spend more time with them when he is released from prison.
CZ's Future and Current Role at Binance
Although Changpeng Zhao is banned from participating in Binance’s day-to-day operations, he still holds a majority stake in the company and thus has power within the company. While Binance has faced regulatory issues including recent events and the arrest of several executives, Zhao’s strategic decisions could shape the future of the exchange.
Before his detention, Zhao said he planned to continue his charity work, including his Giggle Academy project, which focuses on providing free educational materials to children around the world. However, information about the project remains scarce, with little apparent progress on the initiative’s website.
At the same time, the US House Foreign Affairs Committee passed a resolution calling for the release of Tigran Gambaryan, Binance's financial crimes compliance officer, who was arrested in Nigeria this year.
Binance Coin Price Trend
The Binance founder made the announcement at a time when Binance Coin (BNB) is up 2% and is likely to break above the resistance trendline at $600. The market is predicting that the bullish momentum will continue, with a possible 20% price increase to $722 before falling back to $783.
Furthermore, Binance’s newly launched Pre-Market service is expected to increase the frequency and volume of user trading on the platform and in turn, could boost demand for BNB. However, if BNB comes under selling pressure again at $600, there could be a reversal leading to consolidation.
The expected rise in BNB prices is partly due to the enthusiasm generated by Changpeng Zhao’s return even after he agreed to step down as CEO and stay away from Binance’s day-to-day operations as stated in his agreement. However, the cryptocurrency exchange, which is now more focused on Asian and other overseas markets, remains under the supervision of U.S. government-appointed regulators.
