YEREVAN (CoinChapter.com) — Changpeng Zhao, better known as CZ, is approaching the end of his four-month prison sentence. Despite the legal challenges facing CZ and Binance, BNB has maintained its price stability. Investors remain attentive as new lawsuits have emerged, but the cryptocurrency’s value shows minimal reaction to recent developments.
Changpeng Zhao’s Imprisonment and Legal Penalties
Earlier this year, Changpeng Zhao was sentenced to four months in prison after being convicted of violating the Bank Secrecy Act (BSA). This conviction followed accusations of Binance’s inadequate KYC (Know Your Customer) procedures. The U.S. government imposed a $50 million fine alongside the sentence, handed down in April 2024.
Initially, federal prosecutors pushed for a longer term, but Zhao’s sentence was reduced. In addition, as part of the settlement, CZ resigned as CEO of Binance, and the company itself faced severe penalties. Binance pleaded guilty to charges of money laundering and sanctions violations, which resulted in a substantial $4.3 billion fine.
The U.S. Federal Bureau of Prisons confirms that Changpeng Zhao, aged 47, is scheduled for release on September 29, 2024, under registration number 88087-510. Although Zhao is nearing his release date, the market has remained calm.
New Lawsuits Target CZ and Binance’s Security Practices
As CZ’s release approaches, new legal challenges have surfaced. In mid-August, three crypto investors filed a lawsuit against Binance and CZ, accusing them of failing to ensure the safety of users’ funds. The plaintiffs argue that these security lapses allowed stolen funds to be laundered through the exchange.
These lawsuits add to the mounting pressure on Binance, which is already dealing with investigations by regulatory bodies worldwide. Despite these serious allegations, the impact on BNB remains minimal. As of this writing, BNB trades at $532.79, showing a 3.51% weekly increase.
CZ Moved to Halfway House Before Prison Release
Moreover, social media reports debunked earlier rumors of Changpeng Zhao’s early release. Protos confirmed that officials recently transferred CZ from FCI Lompoc II, a federal prison in California, to a halfway house in Long Beach. This transition helps inmates reintegrate into society as they near the end of their sentence.
News CZ Release․ Source: @CapoMetaDao
Notably, though CZ has moved to the halfway house, he remains in custody. In fact, authorities have set his official release date for September 29, 2024. The crypto community closely monitors these developments as the legal battle against Binance continues.
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