Market
This Is What Binance’s CZ Will Do After His Prison Release
Binance founder and former CEO Changpeng Zhao (CZ) exited prison on Friday, two days before the official release date.
The popular crypto executive has not wasted any time sharing what he will be doing post-release, and it does not involve Binance or anything close.
Binance’s CZ Shares Post-Release Plans
Changpeng Zhao began his post by expressing gratitude for the freedom to make personal choices, such as selecting his own meals and enjoying as many fruits as he desires each day. He reflected on his past experiences, acknowledging the lessons learned and looking forward to future opportunities. In light of his release from jail, CZ also shared his plans for what he will be doing next.
First, CZ commits to furthering his education initiative, Giggle Academy. The Binance executive had aggressively promoted the initiative before his arrest. The Binance founder also said he would dedicate time and funding to charity, which aligns with his philanthropic work at Giggle Academy, which offers free education.
As of March 30, the project comprised a team of 10 members, some part-time, while others serving full-time but working remotely. Notably, one of Giggle Academy’s objectives is to teach kids how to avoid rug pulls.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Zhao also revealed his plans to finish writing his book and attend crypto-related conferences. While he may no longer be directly involved in Binance activities, CZ will remain active in the blockchain space. He highlighted that as a long-term investor, his priority is making a positive impact rather than focusing solely on financial returns.
Further, he observed that Binance was doing well in his absence. Notably, Changpeng Zhao faces a lifetime ban from serving as Binance CEO as part of his plea deal. Nevertheless, he maintains executive rights at the company as its majority shareholder.
These developments suggest CZ does not see himself as a CEO driving a startup again. They also demonstrate contentment with being a one-time entrepreneur and a possible mentor.
With these, crypto markets can expect to see CZ around, or rather, hear from him, with his X (formerly Twitter) already active two days after release. Based on responses to his social media posts, CZ remains a people-favorite despite the circumstances that led to his arrest.
How Changpeng Zhao Got Here
As BeInCrypto reported, CZ is the wealthiest person ever to serve jail time in the US and the 25th richest man in the world, with a personal fortune of nearly $60 billion. Amid Changpeng Zhao’s post-prison updates, this rear-view mirror shows how the crypto executive made it to jail.
US Department of Justice Investigates Binance
The US Department of Justice (DOJ) started investigating Binance in February 2018, probing the exchange’s compliance with Anti-Money Laundering (AML) laws and sanctions. Specifically, prosecutors were exploring charges of unlicensed money transmission, money laundering conspiracy, and criminal sanctions violations.
In August 2023, the DOJ considered fraud charges against Binance. However, the authorities expressed concern about the possibility of a bank run and wanted to spare consumers the trouble. To avoid harming customers, they considered alternatives to criminal charges, including fines or non-prosecution agreements.
Charges That Sent Changpeng Zhao To Jail
The US DOJ levied criminal charges related to CZ in November 2023. Among them, were violating US Anti-Money Laundering (AML) laws, unlicensed money transmitting, and sanctions violations.
He pled guilty the same month, capitulating to the DOJ and resigning as Binance CEO while introducing Richard Teng as successor. He admitted to making mistakes, saying he would take responsibility, a move intended to be for the sole benefit of the community, Binance, and for himself. Noteworthy, Teng ascended to Binance CEO after serving as Global Head of Regional Markets.
This guilty plea saw him released from custody on a $175 million bond. At this point, he was facing up to 18 months in prison as part of his plea deal with the US Government.
In addition, CZ and Binance were charged with one of the largest criminal penalties in US history. The exchange paid a $4.3 billion fine while Zhao paid up to $50 million. For CZ, this was a modest amount given his estimated net worth.
Ripple Chief Legal Executive Stuart Alderoty supported the US DOJ’s decision on Binance, saying it was necessary to bring crypto into compliance.
CZ Sentenced To Four Months In Prison
Seattle District Court Judge Richard Jones issued the four-month sentence in April 2024, saying, “There needs to be an effort by this court to impose a sentence that’s appropriate and reasonable.” Key highlights in the court session include CZ’s guilty plea and cooperation with authorities.
The DOJ argued that Changpeng Zhao willfully allowed illegal trades on Binance. He also failed to report thousands of suspicious criminal activities, which attracted profits of around $1.6 billion from such transactions.
The Federal sentencing guidelines set a maximum sentence of 18 months but under normal circumstances, the charge would have carried up to 10 years in prison.
Notably, the DOJ was pushing for 36 months sentence. On the other hand, CZ’s defense pursued five months of probation, while sentencing guidelines suggested 12 to 18 months in prison.
However, Judge Jones ruled a lenient four-month sentence. Character references from colleagues and industry leaders played a significant role in this determination. The judge said he had never seen such a large amount of uniformly laudatory testimonials about a defendant.
Impact of Prison on CZ’s Wealth and Binance Stake
The short answer is none! Changpeng Zhao’s personal fortune has not been affected by the case, save for the modest $50 million fine paid in November. He also reserves majority shareholder rights at Binance, which by Forbes estimates, is a 90% stake.
In 2021, Changpeng Zhao said in a Bloomberg interview he does not own any real estate or much capital in fiat currencies. Rather, his crypto holdings made up nearly 100% of his entire net worth. He also revealed that he sold his house in 2013 to buy Bitcoin, which marked the beginning of his crypto journey.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
Based on Forbes data, CZ owns 64% of the total supply of Binance Coin (BNB) supply. As traders take profits amid the hype surrounding Zhao’s release, BNB has wiped out some of the gains made over the past 24 hours, dropping from $610.20 to trade for $594.71 as of this writing.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.