Binance has agreed to pay more than $4 billion to resolve most of the US investigations into it, and CEO Changpeng Zhao has resigned
Binance co-founder and ex-CEO Changpeng "CZ" Zhao is due to be released from prison on Sunday after serving four months. AFP

KEY POINTS

  • CZ pled guilty to failing to set up adequate consumer protection features for Binance users
  • Crypto users are expecting a bull run in the crypto market considering the timing of CZ's release
  • Zhao previously said he has closed the chapter of his life in Binance and is looking to focus on education

After serving four months in jail following his guilty plea for failing to establish adequate guardrails to protect Binance users, co-founder and former CEO Changpeng Zhao, dearly known as CZ in the cryptocurrency community, is set for release on Sunday.

For the crypto community, CZ is not just a former crypto executive. To many in the industry, Zhao is a legend whom many smaller digital asset holders look up to for his rags-to-riches story.

Three days before his scheduled release, the crypto space is already on fire, preparing to welcome the crypto OG back. Many are looking forward to what he will do next after he stepped down as Binance's CEO as part of his guilty plea that sought to avoid further litigation. Others shared their theories on how the crypto leader's release will affect the burgeoning sector.

CZ's Release to Trigger a Bull Run?

A vast majority of crypto users who are looking forward to CZ's prison release believe a bull run is in sight. Well-followed @danielgothits expects a "golden bull run," while David, the founder of Web3 and crypto marketing firm Scal3, expects markets to pump.

One user said the "Uptober Ceazon" is inbound. The fourth quarter of the year has historically been positive for Bitcoin, the world's largest digital currency by market value.

CZ's release in time for the BTC's expected spike can be good for the crypto market, as most tokens get dragged up when Bitcoin surges.

Making Room for a New Inmate?

One X user had a different take on Zhao's upcoming release, saying it appears he made room for Caroline Ellison, who, earlier this week, was sentenced to two years in prison for her role in the $11 billion collapse of Sam Bankman-Fried's crypto empire.

Ellison was SBF's ex-girlfriend and a former executive at FTX sister company Alameda Research who was also a star witness for the prosecution in SBF's trial. Her legal team sought zero jail time for their client, citing her role in helping get 25 years for Bankman-Fried.

A Bull Run for BNB Memes?

While many are expecting a broader crypto market surge upon Zhao's release, an Ethereum user suggested that a bull run may be more limited to meme tokens on the BNB Chain, the blockchain network initially developed by Binance.

Among the most engaged memecoins on the BNB Chain, which operates independently of its crypto giant developer, are MEMEBET, SHIBASHOOT, and CATGIRL.

Out With the Old, In With the New

There are also theories that CZ will "build the next biggest thing" once he steps out of jail. Such a notion may not be far from reality, as Zhao announced ahead of his sentencing in April that he was working on a new project: Giggle Academy.

The new project is a free, online education platform that will use blockchain-based tokens to certify the achievements of students.

After his sentencing, Zhao promised that after closing his leadership chapter in Binance, he "will remain a passive investor (and holder) in crypto)." At the time, he reminded the crypto space that "compliance is super important."

Binance After CZ

Since Zhao left Binance, the crypto exchange titan has faced multiple legal debacles, including an ongoing case in Nigeria, where the exchange's chief compliance officer Tigran Gambaryan remains in prison.

The crypto giant was also fined over $4 million by a Canadian regulator earlier this year for alleged anti-money laundering violations.

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