TLDR
- Binance founder CZ to be released early from custody in Long Beach, California
- CZ served less than 5 months of his sentence for inadequate anti-money laundering measures
- BNB price has seen a 2% surge with potential for further increase
- CZ remains a major Binance shareholder but is barred from day-to-day management
- US House Foreign Affairs Committee approved resolution calling for release of another Binance official
Changpeng Zhao, commonly known as CZ, the founder of cryptocurrency exchange Binance, is set to be released from custody in Long Beach, California, earlier than expected.
This development marks the end of a less than five-month sentence served by CZ in the United States.
CZ’s legal troubles began when he agreed to a plea deal for failing to implement adequate anti-money laundering measures at Binance.
His original sentence of five months was split between two months in a minimum security facility and three months in a halfway house. The early release is due to the official release date falling on a weekend.
Since his incarceration, CZ has not made any public statements. However, through his legal team, he expressed a desire to spend time with his family upon release.
This includes his children and ex-girlfriend He Ye, who is also a senior executive at Binance. Family character references reportedly played a significant role in CZ’s sentencing.
Despite stepping back from the day-to-day operations of Binance as part of his settlement, CZ remains a major shareholder in the company.
This position still affords him considerable influence over the exchange’s future. However, he is prohibited from involvement in the daily management of Binance.
Before his imprisonment, CZ mentioned plans to focus on philanthropic work, including the Giggle Academy project.
This initiative aims to provide free learning materials for children globally. However, details about the project’s progress remain scarce.
Meanwhile, the cryptocurrency market has been closely watching these developments. Binance Coin (BNB), the native token of the Binance ecosystem, has seen a 2% price increase in recent days.
Market analysts suggest there’s potential for a breakout from a resistance level at $600, with some projecting a possible 20% price increase up to $722.
Binance’s recently introduced Pre-Market service is expected to boost trading frequency and volume on the platform, potentially increasing demand for BNB. However, if BNB faces selling pressure at the $600 mark again, it could lead to a period of consolidation.
The anticipated rise in BNB’s price is partly attributed to the enthusiasm surrounding CZ’s release. Despite his agreement to step down as CEO and distance himself from Binance’s operations, his influence as a major shareholder remains significant.
It’s worth noting that Binance continues to operate under the supervision of monitors appointed by U.S. authorities. The exchange has shifted its focus more towards Asian and other offshore markets in recent times.
In a related development, the U.S. House Foreign Affairs Committee has approved a resolution calling for the release of Tigran Gambaryan, Binance’s official for financial crimes compliance.
Gambaryan was arrested in Nigeria earlier this year, adding another layer of complexity to Binance’s ongoing regulatory challenges.
As CZ prepares to leave custody, the crypto community will be watching closely to see how his release might impact Binance’s operations and the broader cryptocurrency market.
