The Ex-CEO of Binance Changpeng Zhao is set to be released from a Halfway House on September 29 ending several months of imprisonment for the crypto billionaire.
Changpeng Zhao popularly known as CZ in the crypto industry is currently been held at the Long Beach Residential Reentry Management (RRM) facility in central California after being moved from prison to the halfway house in preparation for his release in late September.
CZ altogether will serve out a four month sentence after pleading guilty in November 2023 to breaking United States laws on behalf of his company Binance Limited.
The allegations Mr Zhao was charged with ranges from a failure to implement a thorough Anti-money laundering program as required by the Bank Secrecy Acts and using his platform to facilitate transactions linked to illicit activities and involving Sanctioned entities like Iran.
His settlement with the US authorities involves Binance Limited paying a $4.3 billion fine and Mr Zhao paying a personal fine of $50 million.
He was also prompted to step down as CEO of Binance but still owns a staggering 90% of the company.
Changpeng Zhao joins the infamous list of crypto billionaires to serve jail time after running into trouble with the law.
Another notable mention includes Sam Bankman Fried the founder of the now-defunct FTX exchange who is serving 25 years in prison for fraud.
CZ’s release and its proposed influence on the crypto market
Changpeng Zhao remains a towering and influential figure in the crypto space. His release is net positive news for the crypto industry, especially for crypto assets directly under his realms of influence.
In November 2023, Crypto prices fell after CZ pleaded guilty to criminal charges level against him by the United States Department of Justice.
Binance Coin dumped by 5.9%, after rising as much as 5% earlier in the day with Binance investors wary of the investigation on CZ and its multiplier effect on the industry.
The development reflected on the rest of the crypto market with Ripple’s XRP dropping by 3.2%, Solana dropping by over 4% and Polygon and Uniswap losing 7.8% and 3.8%, respectively.
Bitcoin the primary crypto asset was down by 1.53%, floating just below $37,000 and Ethereum also dropped by 2.1% at $1,992.43.
Given the above information, CZ’s release from prison is expected to have an opposite effect on crypto prices driving them up in response to an obviously bullish news for the market. While CZ’s release from prison is not guaranteed to directly affect every crypto asset. Binance coin BNB seems to be a no-brainer as the asset has already been appreciating in anticipation of his release.
BNB Coin Reaction
Binance Coin (BNB ) the native token of the Binance ecosystem has experienced a significant price surge in anticipation of Changpeng Zhao’s release in late September.
Despite Changpeng Zhao no longer having a managerial role in Binance his legacy and influence still tower over the company and its ecosystem.
BNB coin has appreciated by 21% over the last 16 days as the countdown to the release of CZ continues.
At the time of the report, the crypto asset is exchanging hands for $583 surging by 4.8% in the last 7 days.
BNB Coin has also been the only major crypto asset this year, aside from Bitcoin, to break its all-time high.
The Way Forward for CZ
Changpeng Zhao who will be released from detention on September 29 is still a crypto billionaire with a networth of $26.8 billion according to Bloomberg. His release has sparked some debate on his next move and his current relevance In the crypto industry.
Ki Young Ju, the Chief Executive Officer (CEO) of CryptoQuant an on-chain analytical firm has called for some respect and recognition for CZ despite his brief stint in jail spelling out his enormous contribution to the crypto industry.
Ki took to X to share his thoughts on CZ, his release, and the industry arguing that CZ was simply a victim of a new and growing industry that is still very much imperfect.
“Don’t underestimate CZ. He deserves respect. When the intrinsic value of an industry falls short of the capital it has absorbed, society tends to view this as a “sin.” In such cases, the ones labeled as sinners are those who built and participated in the industry. Society singles out the most influential figure as the guilty party, holding them responsible for the industry’s failure to grow properly. Although many have committed wrongdoings, only a few atone for the industry’s “sins.”
On September 29, CZ (Changpeng Zhao), co-founder and former CEO of Binance, will be released from four months of detention. While he has certainly made mistakes, his detention also carries a vicarious element, representing the industry’s growing pains. CZ is a businessman deserving of respect. Without Binance, the crypto industry would not have attracted the immense global liquidity it benefits from today. Ki stated.
CZ didn’t communicate his next move after stepping down as Binance CEO as he was embroiled in the legal tussle which eventually ended in him getting a 4 months sentence.
This might change when he is released in a few days as the man who has seriously influenced the crypto industry might spill on his intended plans and career path after stepping down from the apex office at Binance.
Binance is still currently in lots of trade spats with various jurisdictions. The company is currently at loggerheads with Nigeria where one of its executives is been held over charges of money laundering and tax evasion