- Binance founder CZ is almost done with his jail time
- What is next for the golden crypto boy?
- Most likely, his legal battles will continue
Binance founder CZ is almost done with his jail time
One of many, unfortunately, fallen crypto boys, Changoen Zhao (CZ) is nearing his release from prison. The founder and former CEO of Binance crypto exchange will mark a dramatic chapter for the crypto industry. His fall was not as painful as others, like SBF, who got sentenced to 25 years, but the conviction made headlines and shocked many fans.
His conviction was centered around allegations of regulatory non-compliance and violations of anti-money laundering laws. CZ was sentenced in November 2023 when the billion-dollar settlement and prison sentence were reached. The US Federal Bureau of Prisons confirmed that he will be released from Long Beach Residential Reentry Management on September 29th[1].
According to the U.S. Federal Bureau of Prisons' website, CZ will have completed a four-month sentence at the federal correctional facility in Lompoc, California. His release will close the chapter on the legal issues surrounding the Binance-DOJ case, which resulted in a $4.3 billion fine and his stepping down as CEO of the exchange.
What is next for the golden crypto boy?
Being free does not mean that he is not guilty, however. Despite his upcoming release, CZ's future with Binance is definitively closed. He faces a lifetime ban from taking up any executive or leadership role within the company.
Current Binance CEO, Richard Teng, has affirmed that CZ will have no involvement in managing the company. However, CZ is already looking ahead. During his incarceration, he has hinted at writing an autobiography, mentioning that the quiet time in prison would be a good opportunity to start writing.
Moreover, he's expressed interest in exploring investments in blockchain, AI, and biotechnology, indicating a new direction for his career post-Binance. Despite the controversies that have marked his career, CZ remains a notable figure in the cryptocurrency industry.
As he navigates life after Binance, his next steps are likely to be closely watched by supporters and critics alike. CZ has not wronged clients as other "boys" involved in cryptocurrency exchange scandals have done. Many have questioned the differences between his sentence and the FTX founder SBF.
Their treatment was different due to charges and their own behavior since SBF was arrogant and avoided legal solutions for a while. CZ was pretty consistent with his plea of guilt and participated in the investigation. However, these actions most definitely affect reputation [2].
Most likely, his legal battles will continue
Binance was fined heavily for not following the rules regarding customer checks and preventing money laundering. While the company was dealing with these issues, new lawsuits were filed against it and its founder, CZ, for not protecting users' money well enough.
This happened as CZ was moving to a halfway house after serving part of his sentence in federal prison. The authorities originally wanted CZ to serve a longer sentence, but it was shortened. Also, as part of an agreement, CZ stepped down as the CEO of Binance.
In August, three cryptocurrency investors sued Binance and CZ, claiming that their poor security measures led to theft and allowed stolen money to be hidden through the exchange. These lawsuits increase the stress on Binance, which is already scrutinized by regulators worldwide.
US court investigated the firm and fined Binance multiple times; one of the settlements involved a 2.7 billion fine. Despite these serious charges, the value of Binance's cryptocurrency, BNB, has not been much affected. It's currently priced at $532.79, having increased by 3.51% over the past week.
Recent reports corrected some false information about CZ getting out early. It has been confirmed that he was moved from a federal prison to a halfway house in Long Beach, California, which helps prisoners adjust back into society. CZ will remain in custody until the end of this month[3].
