Binance founder Changpeng Zhao, also known as “CZ,” has been released from U.S. federal custody two days earlier than expected. His release was originally slated for September 29, 2024. However, as per U.S. code, if a prisoner’s release falls on a weekend, it is to be preponed to the preceding weekday. He was, therefore, released on September 27.
Zhao had been serving a four-month prison sentence because Binance, his company, didn’t follow U.S. anti-money laundering (AML) regulations. Before the announcement, Binance Coin (BNB) was priced at $595, but after news of his early release spread, BNB quickly rose to $610.
Why Was CZ in Prison?
CZ’s trouble started when the US authorities realized that Binance was not doing enough to stop illicit activities on its exchange. The company was accused of allowing customers from restricted countries such as Iran to use its services, which is prohibited in the US.
Subsequently, in November 2023, Zhao pleaded guilty, and Binance agreed to a fine of $4.3 billion. Zhao also resigned from the post of CEO, although his wealth, estimated at $60 billion, did not suffer on account of the case.
On April 30, 2024, Zhao started serving his sentence. He spent time in a low-security prison in California and was later moved to a halfway house. This gave him some limited freedoms, like supervised visits and outings.
What’s Next for Former Binance CEO?
Despite not participating in the day-to-day running of Binance, CZ remains the biggest shareholder of the company, thus owning the bigger part of the company. The company as a whole is doing good and has over 230 million users globally.
At the moment, Richard Teng is the CEO, and the US regulators are paying a lot of attention to the company to make sure that it complies with the law, particularly the anti-money laundering regulations.
Since his release, CZ hasn’t said much publicly, but people are curious about what he’ll do next. Before his legal issues, he expressed a strong interest in philanthropy, particularly in education.
A week into his sentencing, Zhao said he would use most of his time in prison to write a book. He even began a project named Giggle Academy, through which he will provide free education to children across the globe.
This may be an area that CZ pays more attention to than revitalizing his presence in the crypto space. However, CZ has given some signals of his intention to expand new investments in areas like biotechnology, blockchain, and AI.
Source: X
BNB’s Price to Rally?
It is not new for developments in Zhao’s legal issues to impact the value of Binance’s native token, BNB. On September 6, BNB was priced at $487.20. But in the days leading up to CZ’s release, it surged past $600.
BNB/USD Chart | Source: CoinMarketCap
BNB price reached its all-time high of $720 while CZ was in prison, but it is currently trading 16% below that level. As of press time, BNB price was trading at $610, a 2.45% surge in the last 24 hours. Some analysts believe this is just the beginning and more potential gain is expected to come next.
