Ex-Binance CEO CZ May Leave Prison Today, yet His $60B Fortune Remains Tied to Restrictions

Key Takeaways

• Former Binance CEO CZ will be released two days before his set release date on Friday.
• CZ will no longer be able to return to Binance in a managerial capacity due to the plea deal.
• Many speculate that CZ might start a new venture or continue his philanthropic efforts.

Former Binance CEO Changpeng Zhao, aka CZ, is set to be released from prison later today, two days before his scheduled release on Sept. 29. Under the United States prison rules, if an inmate’s release date falls on the weekend, they are released on the last weekday before the weekend.

CZ was serving a curtailed four-month sentence for failing to implement adequate anti-money laundering measures in Binance. The former CEO spent two months in a minimum security prison in California and was later shifted to a halfway house in Long Beach for the remainder of his jail term.  

CZ’s $60B Binance Fortune Remains Restricted

Binance CEO CZ’s deal with American regulators prohibited him from returning to Binance as an executive or board member for at least three years.  

A lot has changed in Binance’s leadership since Zhao’s exit, and he might never be able to return to an executive role in the exchange he built from the ground up.

Current Binance CEO Richard Teng had confirmed earlier that CZ won’t be returning to manage the exchange anytime soon. Teng revealed that the exchange has barred the former CEO for life from heading the crypto platform. However, that doesn’t mean CZ has no say in decision-making.

CZ is still the largest stakeholder in Binance, making him the unofficial boss. Teng said the Department of Justice DoJ plea deal leaves much room for interpretation. So, despite being barred for life, CZ might have a more significant say as the largest shareholder.

“​​As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it’s always his right to replace, nominate a new board of directors, or a new CEO… shareholders can also always table a resolution,” said Teng.

CZ to Turn to Philanthropy?

With the Binance management role out of the picture for at least the next three years, CZ could either turn to a retired life with family, away from public glare, start a new venture of his own, or continue on the philanthropic endeavors, supporting innovation.

Under CZ, Binance created several funds and incubation projects to help budding Web3 projects gain mainstream attention. Many in the crypto community hope that CZ will continue his philanthropic journey.

A Binance spokesperson said  that  CZ will be home with his family. 

“While he is not managing or operating Binance, we are excited to see what he does next. Since last year, Binance has continued to thrive under the leadership of our current team, surpassing 229 million users globally.”

Many speculated that CZ would spend several years in prison owing to the multiple regulatory investigations into Binance. The four-month prison sentence was a win-win situation for the regulators and the former chief of the exchange. 

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

See more

[email protected]