Changpeng Zhao, founder and former CEO of Binance, is just over a month away from completing his sentence and has apparently been transferred to a federal office in Los Angeles.
«Big news: Changpeng Zhao is out of prison»
The news caused confusion and false rumors among social media users, who believed that CZ had actually been released permanently.
Thus, on X several users celebrated a release that did not happen. Some even spoke of a big bull market for BNB.
However, what actually happened was that the Binance founder was apparently transferred from a minimum-security prison in Southern California to so-called “halfway houses” or residential reentry offices.
It is worth noting that the news broke on August 22 when the United States Federal Bureau of Prisons added CZ’s name to the list of inmates for Residential Reintegration Management.
It should also be recalled that Zhao was found guilty of allowing Binance to operate in violation of anti-money laundering regulations. He was subsequently sentenced to 4 months in prison.
For now, with this news we can say that Zhao is no longer in prison, but remains in custody.
Furthermore, we cannot clarify why CZ was transferred to this new location with only one month left to complete his sentence. Although several users believe that in this way the founder will finish his sentence in a residential center instead of a penitentiary institution.
What’s next for Changpeng Zhao after his release?
What is next in Changpeng Zhao’s case, as we mentioned, is his release in just over a month after 4 months in prison. After that, he will probably return to his wife and children in Dubai.
However, an important point to keep in mind is that Zhao was banned from operating and managing crypto projects for 3 years. Therefore, expecting a return to the exchange’s management is wrong. So Richard Teng will continue under the direction of the exchange, continuing Zhao’s work.
Before entering prison, CZ suggested various tasks such as working on a writing project. He also said he would use the time for reflection and meditation.
His failure to return to the board of Binance may seem unfavorable, however, it is most likely that his mind and ideas will continue to be behind the world’s largest exchange, even if he is not a director.
Furthermore, it should be noted that Zhao remains the richest person in the crypto sector, with $47.7 billion in assets.
Remembering Zhao’s case
CZ was convicted in November 2023, and then resigned from his senior position in the finance department, pleading guilty under a plea agreement. Binance then paid $4.3 billion as compensation for violating regulations related to its operation.
Last April, a judge sentenced CZ to four months in prison, while the former director pleaded guilty. He subsequently reported to prison on May 31.
In addition to the conviction, he was banned from serving as an executive at any Cryptocurrency company in the future.
Finally, it is worth noting that Binance was sued again recently, as we already reported in a post. Precisely three investors sued alleging that Binance allowed the laundering of stolen cryptocurrencies.
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