Former Binance CEO Changpeng “CZ” Zhao was released on Friday after serving 118 days of a four-month prison sentence.
Zhao’s early release came under federal regulations allowing for weekend releases, following his April plea deal in which he admitted to violating U.S. anti-money laundering laws.
The court ordered Zhao to personally pay a $50 million fine, and Binance was hit with an additional $4.3 billion penalty.
According to a report by Fortune, despite his legal issues and time served, Zhao is still estimated to hold a personal fortune exceeding $60 billion.
BNB Rises on Zhao’s Release
Following Zhao’s release, Binance Coin (BNB) saw a nearly 7% surge. While Zhao is no longer at the helm of Binance, some analysts believe his influence in the crypto industry could bring stability to the market and even foster growth. This suggests that Zhao’s presence continues to have a strong impact on the sector, with his actions potentially driving significant market changes.
Convictions in the Crypto Sector Surge
As Zhao regains his freedom, a new study by Social Capital Markets highlights a significant trend in the legal landscape of the cryptocurrency sector. The research shows that convictions related to crypto crimes increased by 267% between 2019 and 2023. Analysts suggest that this rise reflects the growing effectiveness of law enforcement in pursuing and prosecuting such offenses.
The report also notes that with increased regulatory scrutiny over the past decade, crypto-related convictions have surged by 300% overall. As of now, convicted crypto leaders have received a total of 272 years in prison. This trend underscores the joint efforts of regulatory bodies like the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) to clamp down on illegal activities in the crypto space.
