In a long-awaited development, the Federal Bureau of Prisons (FBP) has revealed that Changpeng Zhao (CZ), the founder and former CEO of the crypto exchange Binance, will be released on September 29, 2024. The release notice came amid a bearish crypto market, during which Binance’s native token (BNB) has not seen any significant price increase. It traded below $540, marking a 4.2% price drop.
CZ to be Freed on September 29
The FBP has revealed CZ’s release via its official website, where the renowned crypto investor appeared in a list of inmates to be released on September 29 with the Bureau of Prison (BoP) registration number 88087-510.
The exchange’s founder was arrested and imprisoned in May 2024 for violating U.S. money laundering laws. Although prosecutors suggested that CZ be detained for three years, U.S. District Judge Richard Jones decided on a four-month prison sentence.
Before his imprisonment, CZ stepped down as CEO of Binance and appointed Richard Teng to handle the company in his place. He also agreed to pay the U.S. government a $4.3 billion fine for supporting money laundering via his crypto exchange, Binance.
CZ has been a significant figure in the crypto industry, fostering crypto adoption and Binance’s growth while he oversaw the exchange’s activities. Therefore, the crypto community looks forward to his release, as it may be just the push needed to awaken BNB and boost investor confidence in centralized exchanges.
Other Countries React to CZ’s Arrest
Following CZ’s case in the United States, the governments of other countries have intensified their investigations of Binance and other crypto exchanges, tightening their laws to monitor crypto transactions closely within their region.
Nigeria followed the flow, banning Binance peer-to-peer transactions and detaining the exchange’s representatives. Additionally, it has closely monitored crypto trading in the country, approving only two exchanges, Quidax and Busha, while others await a response from the country’s Securities and Exchange Commission (SEC).
