Changpeng ‘CZ’ Zhao, the former CEO of Binance has been released after serving 118 days of his four-month prison sentence. Initially, Zhao pleaded guilty to violating US money laundering laws. However, under federal regulations that allow early release on weekends, he was set free. As part of his punishment, Zhao was fined $50 million personally, while Binance, the company he founded, faced a separate penalty of $4.3 billion.
Despite these legal troubles, Zhao remains a key figure in the cryptocurrency industry. In fact, he is still one of the wealthiest individuals in the sector. His estimated fortune of over $60 billion, according to Fortune magazine. His release has sparked speculation about the potential impact on both Binance Coin (BNB) and the broader crypto market.
Binance Coin Price Increases After Zhao’s Release
Immediately following his release, Binance Coin (BNB) experienced a nearly 7% increase in value. Even though Zhao is no longer the CEO of Binance, his presence and influence in the crypto world are undeniable. Some analysts believe that his return could bring stability to the market. As a result, this may further drive the price of BNB upward, reflecting Zhao’s continued impact on the cryptocurrency market.
Increase in Crypto-Related Convictions
Interestingly, Zhao’s release comes at a time when legal convictions within the cryptocurrency space are rising. For instance, a recent study by the Social Capital Markets team found that crypto-related convictions surged by 267% between 2019 and 2023. Furthermore, over the last decade, there has been a 300% increase in criminal convictions tied to the crypto industry.
This growing scrutiny is largely due to increased enforcement by agencies like the US Securities and Exchange Commission (SEC) and the Department of Justice (DoJ). As a result, crypto leaders have faced a total of 272 years in prison sentences. This trend highlights the legal challenges the industry is currently facing.
Market Outlook for Binance Coin
As Zhao re-enters the public sphere, many are wondering if his return will help stabilize Binance Coin (BNB) in the long term. His influence, combined with the growing legal attention in the industry, could shape the future of both Binance and the broader cryptocurrency market.