Binance founder and former CEO Changpeng Zhao (CZ) may be released from prison today, September 27, according to Fortune. This contradicts earlier data from the US Federal Bureau of Prisons (BOP) that indicated a release date of Sunday, September 29.

The contradiction, however, is based on technical guidelines. CZ has been serving a four-month sentence at the Federal Correctional Institution in Lompoc, California, since July.

The 47-year-old former crypto exec could be released, given that federal rules allow inmates to leave custody early if their release date falls on a weekend.

Federal Rules and Release Conditions

"The Bureau of Prisons may release an inmate whose release date falls on a Saturday, Sunday, or legal holiday, on the last preceding weekday unless it is necessary to detain the inmate for another jurisdiction seeking custody under a detainer, or for any other reason which might indicate that the inmate should not be released until the inmate's scheduled release date," a program document from the BOP states.

Reports suggest a chauffeured car may be waiting to transport CZ to a private jet upon his release. The plane will likely fly him to Dubai or Paris, where his partner, He Yi, and their children reside.

Legal Background and Sentencing

CZ was found guilty of failing to implement proper anti-money laundering controls at Binance, among other charges. Despite the Department of Justice pushing for a three-year sentence, CZ received a relatively lenient four-month term. His legal team secured this outcome by sharing character references and highlighting his plans to focus on philanthropy.

On April 30, US District Judge Richard Jones sentenced Changpeng Zhao (CZ) to four months in prison in Seattle. The charges stemmed from allegations that CZ failed to implement an effective anti-money laundering framework at Binance, potentially enabling cybercriminal and terrorist activities on the platform.

Market Implications

This sentencing culminated a multiyear investigation by the US Department of Justice (DOJ) into the activities of Zhao and Binance.

In November 2023, CZ agreed to pay a $50 million fine and relinquish his position as Binance CEO to resolve the investigation. Concurrently, Binance faced a substantial $4.3 billion penalty as part of the settlement.

As part of his plea deal, CZ is banned for life from serving as Binance's CEO, but he retains executive rights as the company's majority shareholder.

As news of his potential early release circulates, traders and investors are bracing for potential market volatility, particularly in altcoins and Binance Coin (BNB).

CZ retains executive rights as the company's majority shareholder despite being banned from serving as CEO.

Investors are closely monitoring the situation. Releasing such a high-profile figure could lead to significant movements in the cryptocurrency market. Whether this will result in a bullish or bearish trend remains to be seen.