Changpeng Zhao, former CEO of Binance, is expected to be released from prison in August after serving 4 months for failing to verify user identities, allowing money laundering.
Changpeng Zhao or simply CZ, former CEO of Binance, world’s largest Crypto Exchange, is getting out of prison in August. He was sentenced for 4 months imprisonment for failing to properly verify the Binance users identity, which then allows criminals to launder money.
Why was CZ in Prison?
Binance is a platform where people can buy and sell cryptocurrencies such as Bitcoin. Rules in these platforms exist to prevent criminals for doing illegal activities. These regulations are needed in the companies to verify their users identities so that the developers know who is using the platform.
Changpeng Zhao was in trouble because Binance failed to perform enough of these examinations. This directly meant that criminals may have used Binance to hide or transfer their money earned by doing illegal activities.
What Now for CZ?
It’s not clear how CZ will return as CEO of Binance. During his absence from work, the company has run smoothly under new leadership. CZ might decide to stay out of the day-to-day operations.
What About Binance?
The entire situation definitely harmed Binance’s reputation. People trust companies like Binance with their money, so the possibility that they might not be doing enough to keep it safe is a big deal. Binance will have to work hard to earn back that trust.
Cryptocurrency Rules Are Changing
Governments around the world are now paying more attention to the cryptocurrency world. This means companies such as Binance may face more strict rules in the future. With Changpeng Zhao out of prison, there may be more discussions about the new rules.
Binance Platform Future
Changpeng Zhao’s release shows a new chapter for Binance. To be successful in the future, the company will need to focus on the following:
Regaining Trust: Binance must convince people that they can once again trust them with their money. This also includes to implement strong security precautions to prevent criminals from using the platform.
Following the Rules: As mentioned before, governments from the world will likely apply more strict rules on cryptocurrency companies. Binance needs to guarantee that these rules are strictly observed to.
Adapting the Change: The cryptocurrency industry is always evolving. Binance will need to adapt to these regulation changes in order to maintain their position as a tough competition in the crypto market.
CZ is going to be released from prison in August, but Binance’s challenges are not completely finished. To ensure Binance’s long-term success, the company need to rebuild trust, follow the stricter rules and adapt to changing conditions in the crypto market.
Also Read: SEC Binance Lawsuit: Main Charges Upheld, Hearing Set for July 9
