Binance co-founder’s sentence nears end with Halfway House transfer

• Published On: 24 August 2024 at 18:57

Changpeng Zhao, also known as CZ, Binance's co-founder and former CEO, has been transferred from prison to a halfway house in Long Beach, California, as he prepares to be released in September.

This move has sparked optimism in the cryptocurrency community, with many seeing his release as a positive sign for Binance-related assets such as Binance Coin and Binance Smart Chain.

Zhao's transfer to the Residential Reentry Management office is a step toward his scheduled release on September 29. Despite being moved to a halfway house, he remains in custody as he transitions out of prison.

The crypto community has reacted positively to the news, with various crypto-themed accounts on X (formerly Twitter) speculating on how CZ's release will impact the market. One tweet stated, "JUST IN: Binance founder CZ is out of prison and has been transferred to a 'halfway house.'" Full release in September, right in time for the bull market."

Zhao began serving his sentence in late May for violating US anti-money laundering legislation. Following his conviction, he was forced to resign as Binance CEO, leaving the position to Richard Teng, a former top executive at the company. In addition to the $4.3 billion fine imposed on Binance, Zhao agreed to a $50 million personal loan and was barred from managing the company for three years under his agreement with US authorities.

Binance, the world's largest cryptocurrency exchange, has faced regulatory challenges on a global scale. In India, Binance was fined $2.25 million for operating without a license, but the fine was later reduced to $2 million to restore services. In Nigeria, Binance is embroiled in legal proceedings over alleged money laundering and tax evasion, with one executive currently detained.

In response to regulatory issues, Binance intends to strengthen its compliance department, demonstrating its commitment to addressing global compliance concerns. A halfway house, also known as a community corrections center or a residential reentry center, assists people in returning to society after being incarcerated or receiving treatment.