Breaking: Binance Founder CZ To Be Released Today, BNB Price Rally Ahead?
Binance founder Changpeng Zhao, widely known as “CZ,” is set to be released from custody today, marking the end of a four-month sentence in the United States. Zhao’s release is expected to have significant effects on the cryptocurrency market, especially on Binance Coin (BNB) as it has been displaying uptrend in the last few days.
Binance Founder CZ To Be Released Today
As a report by Fortune indicates, Changpeng Zhao is set to be released from a halfway house in Long Beach, California, two days earlier than planned owing to the fact that the official date fell on a weekend. Zhao, who had voluntarily returned to the US from Dubai this year, was incarcerated after having agreed to a plea deal for not putting enough measures against money laundering at Binance which he founded.
His original sentence of five months to be served in prison was divided into two months at a minimum security facility followed by three months at a halfway house.
Zhao has not made any statement since his release but through his legal team, he said that he wants to spend time with his family, including his children and his ex-girlfriend He Ye who is also a senior executive at the crypto exchange. Zhao’s defence was that the character references from his family played a big role in his sentencing and he has plans to spend more time with them when he gets out of jail.
Zhao’s Future and the Ongoing Role at Binance
Even though Changpeng Zhao is banned from being involved in the day to day running of Binance, he still holds the majority of the company’s shares and is therefore powerful in the company. While Binance is facing regulatory issues including the recent events and arrests of some of its executives, Zhao’s strategic decisions may define the future of the exchange.
Before his imprisonment, Zhao said that he planned to continue his philanthropic work, including the Giggle Academy project, which will focus on the provision of free learning materials for children around the globe. However, information on the project is still scarce and there is not much evident progress on the website of the initiative.
Concurrently, the US House Foreign Affairs Committee has approved a resolution calling for the release of Tigran Gambaryan, the Binance official for financial crimes compliance, who was arrested in Nigeria this year.
BNB Price Trend Post Binance Founder Release
The Binance founder’s release comes at a time when Binance Coin (BNB) has been on the rise with a 2% price appreciation and a potential breakout from a resistance trendline at $600.The market anticipates continued bullish momentum, with a 20% price increase possible up to $722 before easing toward $783.
Furthermore, Binance’s recently introduced Pre-Market service is expected to enhance the user’s trading frequency and volume on the platform and, in turn, may bolster the demand for BNB. However, if BNB finds itself under selling pressure at $600 again, there could be a reversal resulting in consolidation.
The expected increase in BNB price is partly attributed to the enthusiasm caused by Changpeng Zhao’s return even after he agreed to resign as the CEO and stay away from the day-to-day operations of Binance as laid down in his settlement. Despite this, the crypto exchange, which is now more focused on the Asian and other offshore markets, is still under the supervision of the monitors appointed by the U.S. authorities.
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