Source: X / @cz_binance
The Federal Bureau of Prisons has officially announced that Changpeng Zhao, also known as CZ, the founder of Binance, is set to be released on September 29, 2024—a highly anticipated development.
This confirmation was verified through the Bureau’s Inmate Locator tool, which lists Zhao’s identification number as 88087-510 with the corresponding release date.
With many expressing their anticipation of CZ on social media, his release represents a major turning point for Binance and the cryptocurrency world.
Binance’s CZ Coming Back Before The End Of September: Bullish Outlook?
Early this morning, a number of sources’ tweets containing information from the Federal Bureau of Prisons website gave rise to rumors that Zhao was about to be released.
The tweets were all claiming the same thing,
“Binance Founder CZ Scheduled for Release on September 29, According to Federal Bureau of Prisons Website.”
The release of CZ on that specific day has been confirmed, and the Federal Bureau of Prisons website makes this clear.
The crypto community has responded in kind to this news, with many viewing CZ’s return as a turning point for Binance and the digital asset market as a whole.
It is anticipated that Zhao’s release will significantly affect Binance’s business practices. Under his direction, Binance dominated the market and grew to be the biggest cryptocurrency exchange globally in terms of trading volume.
His return might indicate a change in the platform’s approach as it deals with regulatory scrutiny that is becoming more intense and competition from decentralized exchanges.
Analysts covering the markets have already started talking about the possible repercussions of his release. A lot of people think that Zhao’s comeback will boost trust in Binance, which could increase trading volume and bring attention back to the company’s main goals.
Others, however, are still wary, pointing out that since CZ’s legal issues started, the regulatory environment has undergone substantial changes.
The Charges Leading to Zhao’s Arrest
Zhao’s legal issues started in late 2023 when a thorough investigation into Binance’s operations was started by US authorities.
CZ was arrested under allegations of violating several U.S. financial laws, including charges related to money laundering, operating an unlicensed money transfer service, and facilitating illegal transactions through Binance’s platform.
The Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) spearheaded the legal action against Zhao and Binance, alleging that they had enabled illegal activities on their platform.
The accusations centered on Binance’s noncompliance with American anti-money laundering (AML) laws.
According to U.S. officials, Binance enabled traders to transact without following the required Know Your Customer (KYC) protocols, allowing unscrupulous individuals to utilize the platform for financial crimes such as money laundering.
Furthermore, CZ was charged with deliberately evading legal frameworks that permitted Binance to conduct business in some jurisdictions without a license.
In addition, Binance was charged with enabling transactions linked to illicit activities, including financing terrorists, ransomware attacks, and the laundering of billions of dollars in illicit funds.
The DOJ’s case against CZ and Binance following his arrest has resulted in heightened scrutiny of other significant exchanges.
Zhao defended his innocence throughout the court proceedings, saying that Binance had always taken compliance seriously and that the business was closely collaborating with authorities to resolve the issues.
However, the weight of the charges led to his detention and four months prison sentence as the investigation into Binance’s practices unfolded.
There are still unanswered concerns regarding Zhao’s future at Binance and the exchange’s strategies for overcoming its present and upcoming regulatory obstacles in light of his impending release.
Even though CZ’s leadership was crucial in turning Binance into a major player in the world of cryptocurrency, the market may be very different when he returns because much of it is now governed by more stringent laws and regulations.