Binance co-founder Changpeng Zhao, fondly known in the crypto space as CZ, was slated to be released from custody on Friday evening, two days ahead of his scheduled release date, following his four-month stint in prison.
Now, crypto community members are speculating on the potential impact CZ’s early release could have on the market. CryptoQuant founder, for instance, has suggested that if he announces his return, the crypto market will rocket higher.
Why CZ Is Being Released Early
Binance’s CZ is now a free man.
The former Binance CEO was slapped with a four-month sentence in April after pleading guilty to violating the Bank Secrecy Act by failing to establish adequate know-your-customer (KYC) procedures at Binance.
While his prison term was scheduled to end on Sept. 29th (Sunday) officially, according to the U.S. Department of Justice’s Federal Bureau of Prisons rule, inmates whose release date falls on a weekend or holiday can be discharged on the last preceding weekday.
Zhao spent roughly three months at a low-security federal prison in Lompoc, California, before being transferred to a halfway house in San Pedro, California, late last month.
According to the Bloomberg Billionaires’ Index, Zhao is arguably the wealthiest person to ever go to prison in the United States, with an estimated net worth of $30 billion.
“We are delighted that CZ will be home with his family. While he is not managing or operating Binance, we are excited to see what he does next,” a Binance representative reportedly posited. “Since last year, Binance has continued to thrive under the leadership of our current team, surpassing 230 million users globally, and we are proud to continue leading the industry responsibly.”
Notably, Zhao faces strict limitations on his involvement with Binance, even after his release. The current CEO, Richard Teng, said in an interview earlier this month that CZ is barred from managing the world’s largest exchange for life. According to Teng, this was a key condition of the plea agreement between Binance and U.S. authorities.
Full-Blown Crypto Market Rally Impending?
CryptoQuant founder and CEO Ki Young Ju shared his bullish view on the cryptocurrency market in a post on the X (aka Twitter) platform, arguing that Zhao getting out of prison could ignite a wave of optimism. Young Ju posited, “CZ is getting out early today — bullish vibes everywhere. Not sure why, but I’m feeling it too.”
Young Ju believes that as soon as the ex-Binance CEO posts about his return, the crypto market “will skyrocket”.
At press time, Bitcoin continues to hold comfortably above the $65,000 level, higher by 0.8% over the past 24 hours and roughly 11% month-over-month — indicating the market’s bullish sentiment.
