Key Points
- Binance’s founder, Changpeng Zhao, is released from prison two days ahead of the official date.
- CZ served 4 months for reportedly violating the Bank Secrecy Act related to his tenure at Binance.
The crypto industry received great news, as it’s been officially reported that Binance’s founder, Changpeng Zhao, will be released from prison today, September 27.
CZ will step out as a free man for the first time following his four-month sentence. Since April 2024, CZ spent around two months at a minimum security prison in the California desert, before he was transferred to a halfway house in Long Beach, where he is today.
According to a prison official, in Long Beach, CZ was able to make supervised trips, and even go to the movies. But today is a big day for him and his family, and he’s set to walk out freely.
The previously announced release date was September 29, but, due to the fact that the date falls on the weekend, it’s been reported that prisoners can leave early.
CZ Served a 4-Month Sentence
CZ was jailed after agreeing to return to the US from Dubai in order to serve his sentence for failing to implement proper anti-money laundering controls at Binance.
According to official notes, CZ violated the Bank Secrecy Act related to his tenure at Binance. The US Dept. of Justice (DOJ) initially sought a three-year sentence, stating that the severity of CZ’s violations warranted a longer term. However, his legal team advocated for probation instead.
Back in November 2023, CZ pleaded guilty to the DOJ charges and stepped down as Binance’s CEO. This sentence follows the recent strong development in ongoing regulatory scrutiny over crypto exchanges, and compliance with financial laws.
What’s Next for CZ?
Now that CZ will be released and he can finally return to society as a free man, leaving all legal troubles behind, he will reportedly have many options about what to do next. He has a personal fortune of about $60 billion, being ranked as the 25th biggest fortune in the world, according to Forbes.
CZ did not immediately respond to a direct message inquiry about his plans from now on, but, according to his lawyer who reportedly spoke to Fortune, he did not wish to be interviewed on the day of his release.
His first stop will probably be to Dubai or Paris where his children live with their mother, He Ye, also a top executive at Binance.
On May 1, 2024, after CZ received his sentence, he addressed the Court’s decision and future plans. He thanked everyone for their care and support during that difficult period of his life and highlighted the future focus on the next chapter in his life – education.
Back then, he also said that he would remain a passive investor and holder in crypto, highlighting the new phase in which the industry entered and which is very important – compliance.
CZ’s Commitment and Dedication to Philanthropic Activity
The enormous support that CZ received from his family and loved ones who sent letters to the judge responsible for his case have helped but also did CZ’s “extraordinary commitment and dedication” to philanthropic activity across the planet, as the judge himself said.
It remains to be seen how CZ will turn his commitment into concrete activities. It’s worth mentioning the fact that before he was incarcerated, he launched a project called Giggle Academy that pledged to create free, fun, and easily accessible learning tools for children all over the world.
On April 24, CZ chose the logo for his project, showing youth, fun, positive energy, and growth.
CZ explained the choice for the project’s logo, choosing the following elements: youth, fun, play, livelihood, fast global growth, positive energy, and also highlighting the Binance heritage.
More details will probably emerge about Giggle Academy soon.
Binance and the Crypto Industry
Besides philanthropy and family, Zhao may turn his attention to the crypto industry as well, an industry that he dominated for a decade.
Under the terms of his criminal settlement, CZ was required to quit his post as CEO of Binance and stay away from daily activities involving the company. Also, the settlement calls for Binance to accept two external monitors imposed by the US government to ensure compliance.
Binance is now more focused on Asia and off-shore markets, and even if CZ is no longer the CEO, he is still the company’s largest stakeholder, and this should give him considerable influence on the exchange’s future direction.
A Binance spokesperson addressed the release of CZ and said that they are delighted he will finally be able to get together with his family after all this time. The same rep said that while CZ is not managing or operating Binance, they are excited to see what he does next.
Since 2023, Binance has continued to thrive under the new leadership of Richar Teng, surpassing 229 million users globally.
As a free man, CZ is ready for a second act, and his influence will still be felt by the crypto industry and businesses for the years to come.
