On September 28, 2024, Changpeng Zhao, also known as CZ, the former CEO and founder of Binance, quickly returned to social media following his release from prison on September 27. After months of uncertainty, CZ is back, providing updates and insights on his plans.
While his return to the online world has garnered attention, it hasn’t brought the expected surge in the price of Binance Coin (BNB). The broader market sentiment remains negative, and Bitcoin’s ongoing correction is dragging BNB down. Nevertheless, CZ’s reappearance has created waves of anticipation across the crypto community, especially given his role in shaping the industry.
CZ’s Plans After Release
In his first tweet after his release, CZ shared a lighthearted update about enjoying more than one piece of fruit per day, subtly referencing his time spent in prison. While he is not yet ready to address all the questions from the public, CZ’s post provided a glimpse into his plans. He expressed a desire to “chill” before deciding on his next steps but hinted at several opportunities on the horizon.
One of CZ’s main focuses will be Giggle Academy, an educational venture he has been involved in and plans to dedicate more time to over the next few years. He also intends to invest heavily in blockchain, decentralised technologies, AI, and biotech, industries he believes will continue to have a significant impact. As a long-term investor, CZ emphasised that his priority remains creating meaningful change rather than simply seeking financial returns.
Charity and education are also high on CZ’s agenda. He revealed he has several rough ideas for funding philanthropic projects, a move that aligns with his philosophy of giving back. Additionally, he mentioned progress on a book he has been working on, which is now two-thirds complete. Despite the difficulties of writing, CZ is determined to finish it, offering a more personal look into his journey and the lessons learned.
Despite these ambitious plans, CZ made it clear that he won’t be returning to his former role at Binance. Binance appears to be thriving under its current leadership. In his tweet, CZ acknowledged that Binance is doing well without his direct involvement, which, as he put it, “is every founder’s dream.”
The crypto exchange remains under the capable leadership of Richard Teng, the new CEO, who has been managing operations since CZ’s departure. Teng, with years of experience in regulatory and financial sectors, continues to steer Binance through the ever-evolving landscape of global regulations and market changes. CZ’s focus will shift away from day-to-day operations at Binance, but his influence will undoubtedly still be felt across the crypto industry.
Why Was CZ in Jail?
CZ’s imprisonment in 2024 was a culmination of legal challenges that had been mounting for years. In November 2023, CZ pled guilty to charges related to facilitating transactions with criminal activities and sanctioned nations, including Iran and Cuba. The U.S. government accused Binance of failing to implement robust anti-money laundering (AML) measures, which allowed illicit transactions to flow through the platform. The case gained significant media attention, especially considering Binance’s size and prominence within the global financial ecosystem.
In April 2024, the court sentenced CZ to a prison term for these violations. Binance was slapped with a $4.3 billion fine, while CZ personally paid $50 million as part of the settlement. His plea agreement prevented him from resuming any official role at Binance, although he remains its largest shareholder.
Despite these legal setbacks, CZ’s net worth remains staggering at approximately $30 billion, and he is more focused than ever on exploring new ventures outside of Binance. His time behind bars has not diminished his influence or drive. If anything, it has sharpened his focus on other meaningful projects, particularly in the areas of charity, education, and innovation in the tech space.
CZ might have gotten a lighter sentence could be his overall contributions to the crypto world. In Binance’s early days, some people pointed out that he might have cut corners or ignored some rules. However as the company grew, CZ seemed to show more commitment to following ethical standards, compliance, and being transparent. Could this shift in behaviour have influenced the U.S. authorities to be more lenient?
This raises a bigger question: Can someone in a rapidly changing, closely watched industry make up for past mistakes and be judged more favourably later? If CZ’s actions show real efforts to align Binance with new regulations and ethical standards, it could explain why he received a lighter punishment.
In April, CZ agreed to return to the US from Dubai to serve his four-month sentence. He spent the first two months in a low-security prison in southern California and then moved to a halfway house in Long Beach, where he was allowed to go out during the day under supervision, according to a report from Fortune on Sept. 26.
CZ’s sentence was cut down from the 36 months the DOJ originally wanted, which they had argued was needed to “reflect the seriousness of the offense.”
The US Department of Justice said CZ’s guilty plea involved not just AML violations, but also unlicensed money transmitting and breaking sanctions rules.
The Road Ahead for Binance and CZ
With Richard Teng firmly at the helm of Binance, CZ has no intention of returning to the company’s operations. Teng’s leadership has been widely praised, and his vision for Binance’s future continues to align with CZ’s initial mission of creating a decentralised, borderless financial ecosystem. Under Teng, Binance has strengthened its regulatory compliance efforts, an area that was a focal point in CZ’s legal battles.
CZ’s absence from Binance will allow him to pursue other passions, and his social media return suggests that we’ll be hearing much more from him in the coming months. Whether through philanthropic ventures or investments in cutting-edge technologies, CZ’s journey is far from over. He will remain a powerful figure in the tech and finance worlds, but now with a different focus and a new set of goals.
For now, Binance Coin remains unaffected by CZ’s early release. The broader market, still reeling from Bitcoin’s recent correction, has yet to see a significant recovery, and the overall sentiment remains cautious. However, as CZ continues to lay out his post-prison plans, the crypto community will be watching closely to see how his influence shapes the future of the industry.
Editor: Lydicius
