Market
Binance Founder CZ Freed, BNB Records Modest Weekend Gains
Changpeng Zhao (CZ) was released from California’s Lompoc II detention center on Friday, a low-security prison on the central coast of California. The Binance founder and former CEO completed his four-month sentence, going free two days earlier than the official release date on grounds of weekend policy.
BNB, Binance’s native token, reacted modestly, likely because traders and investors had already priced in the impact.
Binance’s CZ Released From Prison
CZ’s official release date was Sunday, September 29, but according to the Bureau of Prisons (BOP), policy saw him leave the gates on Friday.
“The Bureau of Prisons may release an inmate whose release date falls on a Saturday, Sunday, or legal holiday, on the last preceding weekday. This is unless it is necessary to detain the inmate for another jurisdiction seeking custody under a detainer, or for any other reason which might indicate that the inmate should not be released until the inmate’s scheduled release date,” an excerpt in the BOP’s program statement reads.
As BeInCrypto reported, markets anticipated the release, with the founder of the largest crypto exchange by trading volume completing his sentence. Crypto markets wait anxiously to see what will come next for Zhao. Binance exchange also showed interest in a post-release statement.
“We are delighted that CZ will be home with his family. While he is not managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to thrive under the leadership of our current team, surpassing 230 million users globally,” a Binance spokesperson said.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Before his sentence, CZ initiated Giggle Academy, an education project offering free and fun learning tools for children. After expressing disinterest in returning to an executive role at Binance, the crypto executive may resume his philanthropic work.
Notably, he also faces a lifetime ban from serving as Binance CEO. This was part of his plea deal, but CZ maintains executive rights at the company as its majority shareholder.
Notwithstanding, Changpeng Zhao is effectively the wealthiest person ever to serve jail time in the US. Fortune reported a personal fortune of nearly $60 billion, positioning him as the 25th richest man in the world.
CZ’s post-prison updates are yet to come. However, his X account (formerly Twitter) shared a good morning post, which garnered almost two million impressions within the first two hours. This reflects the popularity that the Binance executive continues to enjoy.
Looking back, CZ pled guilty to criminal charges related to violating US Anti-Money Laundering (AML) laws. Other charges included unlicensed money transmitting and sanctions violations. This culminated in his resignation as CEO in November 2023.
While the Department of Justice (DOJ) pushed for a 36-month sentence, Seattle district court Judge Richard Jones ruled a lenient four-month sentence. Character references from colleagues and industry leaders played a significant role in this determination. The judge also added that there was no evidence that CZ was knowledgeable of any illegal activities at Binance.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
Meanwhile, BNB has increased by 1.12% since the opening of Saturday’s session. As of this writing, it is trading for $610.20.
The modest gains come as the impact of CZ’s release was already priced in after news of possible early release spread.
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