Binance Founder CZ Walks Free After 118 Days: Will His Release Stabilize BNB?

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Trent Alan

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Trent Alan

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Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

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September 27, 2024

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Former Binance CEO Changpeng “CZ” Zhao was released from prison on Friday after serving 118 days of his four-month sentence.

His early release, attributed to federal guidelines allowing for weekend releases, follows a guilty plea issued in April for violating US anti-money laundering laws during his time as Binance CEO.

The court ordered CZ to pay a personal fine of $50 million, while Binance received a separate penalty of $4.3 billion.

Despite his legal troubles and time behind bars, Fortune’s report indicates that Zhao retains a massive personal fortune, estimated to be over $60 billion. His release has sparked speculation within the cryptocurrency community about his potential impact on the market, particularly regarding the future of Binance Coin (BNB).

BNB Sees Uptick as CZ Returns to Public Eye

Since Zhao’s release, BNB has experienced gains of nearly 7%. Although he is no longer at the helm of Binance, some analysts suggest that his influence within the crypto industry could bring a sense of stability to the market, potentially even driving growth.

Crypto Convictions Surge

Coinciding with CZ’s return to freedom, a recent study by the Social Capital Markets team revealed an important trend in the legal side of the cryptocurrency industry.

The study found that crypto-related crime convictions increased by 267% between 2019 and 2023. Analysts point out that this growth highlights the increasing effectiveness of law enforcement agencies in prosecuting such crimes.

Additionally, the report indicates a broader trend of increased scrutiny and legal action in the industry, with a 300% overall increase in convictions over the past decade.

The combined prison time handed down to convicted crypto leaders now totals 272 years. This rise in crypto-based convictions underscores the concerted effort by regulatory bodies like the US Securities & Exchange Commission (SEC) and the Department of Justice (DoJ) to crack down on illicit activities within the industry.