Binance founder expected to be released from prison this Friday
Binance founder Changpeng Zhao, known as “CZ”, is expected to be released from prison this Friday (26), marking the end of a four-month sentence in the United States. CZ's arrest came after he pleaded guilty to several criminal charges and agreed to pay a fine.
As CriptoFácil reported, CZ's arrest took place at the end of April and he began serving his sentence in May. The choice to keep him in prison was to prevent a possible escape to the United Arab Emirates, the country from which CZ has a passport. CZ served his sentence at a halfway house in Long Beach, California.
The release of the Binance founder occurred two days earlier than planned due to the fact that the official date would fall on a weekend. Zhao makes a plea deal admitting that he did not take sufficient anti-money laundering measures at Binance.
As a result, CZ receive an original sentence of five months in prison. However, with the agreement, the sentence time was reduced to four months, divided into two periods. The first was in a minimum security unit, followed by another two months in a halfway house.
Zhao has not made any statements since his release, but through his legal team, he has said that he wants to spend time with his family, including his children and his ex-girlfriend He Ye, who is also a senior executive at Binance.
Future of CZ and Binance
In addition to prison time and a $4.2 billion fine, CZ is prohibited from being involved in the day-to-day management of Binance in any capacity. However, he still holds the majority of shares in the company and therefore has decision-making power.
As Binance faces regulatory issues, including arrests of some of its executives, Zhao's strategic decisions could shape the platform's future.
Before his arrest, Zhao said he planned to continue his philanthropic work, including the education-focused Giggle Academy project. In this project, CZ coordinates the provision of free learning materials to children around the world.
At the same time, the US House Foreign Affairs Committee passed a resolution calling for the release of Tigran Gambaryan, Binance's top financial crimes compliance officer. Gambaryan has been imprisoned in Nigeria for more than seven months.
BNB rises with news
The Binance founder's announcement comes at a time when BNB rose 2% this Friday, according to CoinGecko. This appreciation puts BNB close to breaking a resistance trendline at $600.
The market anticipates continued bullish momentum, with a possible 20% price increase taking BNB as high as $722. Additionally, Binance's recently introduced pre-market service is expected to improve trading frequency and volume. user trading on the platform and in turn can drive demand for BNB.
However, if BNB finds itself under selling pressure in the current region ($600), there could be a bullish reversal that causes the cryptocurrency to fall as low as $583.