Binance Founder Changpeng Zhao Set to Be Released Next Week

Binance founder and former CEO Changpeng Zhao will soon be released from federal prison after serving four months for violating the Bank Secrecy Act.

According to the U.S. Bureau of Prisons, the date is set for Sunday, September 29. CZ is currently serving his sentence at the Long Beach RRM in central California.

Once out, it’s unclear what CZ will do and whether he will decide to reenter the cryptocurrency industry in any capacity. Binance CEO Richard Teng has said that CZ is banned from ever serving in a management position at the company he helped co-found, although he will retain shareholder rights.

However, days before his sentencing in late April, CZ was actively tweeting about a new endeavour dubbed the Giggle Academy, a gamified educational app. The website shows no signs of using crypto in its architecture, and the social media account last tweeted in June.

SEC Amends Lawsuit

On Sept. 12, the SEC amended its lawsuit against Binance, the largest cryptocurrency exchange in the world by trading volume, to include a series of new tokens that it considers unregulated securities.

The agency claimed it was doing away with the term crypto assets because it caused confusion, and focusing on the full set of contracts, expectations and understanding for selling tokens.

A significant addition by the SEC is that Binance is an integral part of the markets for crypto assets, including those that are offered and sold as alleged securities. The company, wrote the agency, “fills these markets with information republishing and amplifying the issuer and promoter statements and activity.”

In June 2023, the SEC sued Binance for breaking U.S. securities laws, along with operating as an unregistered digital currency exchange and as a broker. Allegations of “blatant disregard” for U.S. laws surfaced. Authorities charged Binance with a $4.3 billion fine in Nov. 2023, which will be distributed among several government agencies.