Changpeng “CZ” Zhao is set to be released from prison today. His sentence was cut short because his official release date fell on a weekend, and under U.S. prison rules, he’s being let out later today.
His early release has got everyone in the crypto community on edge, wondering if he’ll kickstart a market rally. CEO of Cryptoquant Ki Young Ju even said :
“Bullish vibes everywhere. Not sure why, but I’m feeling it too. CZ just needs to post ‘I’m back’ and the market will skyrocket.”
CZ served four months for not putting proper anti-money laundering measures at Binance. He was in a minimum-security prison in California for two months before being moved to a halfway house in Long Beach.
CZ’s restricted role at Binance
But CZ isn’t coming back to lead Binance anytime soon. Or even ever. As part of his deal with regulators, he’s banned from any executive role in the company for at least three years.
Current CEO Richard Teng confirmed that CZ is barred for life. But he’s still the largest shareholder, so he’s not completely out of the picture.
Teng pointed out that:
“As a shareholder, CZ 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.”
Binance has changed a lot since CZ’s exit. The company has over 229 million users globally now. It’s growing under Teng’s leadership, who seems completely focused on global expansion.
What’s next for CZ?
So, if he’s not heading back to Binance, what’s next for CZ? There’s the idea that he might turn his focus to philanthropy.
Before his prison sentence, he talked about wanting to give back. He launched a project called Giggle Academy.
The idea is to provide free, fun, and accessible learning tools for kids around the world. He said during the sentencing:
“For the next chapter of my life, I want to provide opportunities for others, namely our youth. I’m building a platform to provide high-quality education for underprivileged kids, all around the world, for free.”
Giggle Academy is still in its early stages though. The website’s up, but there’s not much on it except for some job listings that have been there for months.
There’s no info on timelines or funding sources yet. We can’t know for sure if this will be his main focus after he gets out or just a side project.
But let’s be real. CZ is only 47. He’s not just going to disappear into the background. This guy’s been dominating the crypto industry for years.
The market reaction
As for the market. Bitcoin recently broke out of its consolidation zone between $62,000 and $64,700.
It went over $65,000 on Thursday, but then dipped slightly to around $64,900 early this morning, before then shooting right past $66,000. At press time, it was worth $66,264.
The key resistance level is at $66,790. If Bitcoin breaks above that, we could see a rally up to $70,079, its July 29 high.
But if it drops below $65,000, it could fall another 7% to revisit the September 17 low of $57,610.
Meanwhile, CZ’s early release also means he gets to spend more time with his family. During his sentencing, his family stood by him, testifying to his character.
This support helped convince the judge to give him a lenient sentence. CZ talked about wanting to make up for lost time with his family.
His sister, son, and mother were all there for him. In a 2023 interview with Fortune, CZ spoke about his late father and the fear that he had inherited some of his aloof traits.
It’s possible that this time in prison has given him a chance to reflect and that we’ll see a more family-focused CZ in the future.
