Binance founder CZ could get out of prison today, BOP guidelines suggest
Zhao might get out two days earlier than his scheduled release date due to federal prison guidelines for weekend releases.
Key Takeaways
- Changpeng Zhao is expected to be released early due to weekend release policies.
- Zhao's release may influence Binance Coin prices and market volatility.
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Binance founder and former CEO Changpeng Zhao (CZ) may be released from prison today, September 27, according to Fortune. This contradicts earlier data from the US Federal Bureau of Prisons (BOP) that indicated a Sunday, September 29 release date.
The contradiction, however, is based on technical guidelines. CZ has been serving a four-month sentence at the Federal Correctional Institution in Lompoc, California since July. The 47-year-old former crypto exec could be be released given how federal rules allow inmates to leave custody early if their release date falls on a weekend.
“The Bureau of Prisons may release an inmate whose release date falls on a Saturday, Sunday, or legal holiday, on the last preceding weekday unless it is necessary to detain the inmate for another jurisdiction seeking custody under a detainer, or for any other reason which might indicate that the inmate should not be released until the inmate’s scheduled release date,” a program document from the BOP states.
Reports suggest a chauffeured car may be waiting to transport CZ to a private jet upon his release. The plane is likely to fly him to either Dubai or Paris, where his partner He Yi and their children currently reside.
CZ was found guilty of failing to implement proper anti-money laundering controls at Binance, among other charges. Despite the Department of Justice pushing for a three-year sentence, CZ received a relatively lenient four-month term. His legal team secured this outcome by sharing character references and highlighting his plans to focus on philanthropy.
On April 30, US District Judge Richard Jones handed down a four-month prison sentence to Changpeng Zhao (CZ) in Seattle. The charges stemmed from allegations that CZ failed to implement an effective anti-money laundering framework at Binance, potentially enabling cybercriminal and terrorist activities on the platform.
This sentencing was the culmination of a multiyear investigation by the US Department of Justice (DOJ) into the activities of both Zhao and Binance. In November 2023, CZ agreed to pay a $50 million fine and relinquish his position as Binance CEO to resolve the investigation. Concurrently, Binance faced a substantial $4.3 billion penalty as part of the settlement.
While CZ is banned for life from serving as Binance’s CEO as part of his plea deal, he retains executive rights as the company’s majority shareholder. As news of his potential early release circulates, traders and investors are bracing for potential market volatility, particularly in altcoins and Binance Coin (BNB).
Note: This story is developing, Crypto Briefing is monitoring Zhao’s release and will update this article accordingly.
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