Changpeng Zhao, widely known as “CZ,” the former CEO and co-founder of Binance, has recently suggested he may leave the United States after completing his four-month prison sentence stemming from a settlement with US authorities. Zhao’s release from a US correctional facility occurred on September 27, just two days earlier than initially expected.
CZ Announces Dubai Trip
In November 2023, Zhao pleaded guilty to failing to implement US anti-money laundering (AML) programs while leading Binance. As part of a corporate settlement, Binance had to pay $4.3 billion and Zhao personally faced a $50 million fine.
Following the settlement, a court order imposed strict travel restrictions on Zhao, revoking his passport and restricting his ability to travel outside the US, despite the executive’s desire to travel to Dubai to visit his family before his court appearance.
However, in a recent statement on social media site X (formerly Twitter), Changpeng Zhao announced plans to attend the Binance Blockchain Week in Dubai on October 30-31, indicating a potential shift in his circumstances. CZ stated:
I will be attending the Binance Blockchain Week in Dubai on Oct 30-31, in my personal capacity. It’s one of the biggest web3 events of the year. See you there.
By mentioning this event, CZ seems to suggest that he may now be free to leave the US and return to Dubai, which has increasingly become a hub for crypto activity and host to various digital asset conferences, as well as Zhao’s residence.
How Has Binance Adapted Since CZ’s Sentencing?
As part of his agreement with the US Department of Justice (DOJ), Zhao stepped down from his role as CEO and is barred from holding any future executive position at Binance.
Following his departure, Richard Teng, the former chief regulator of the Abu Dhabi Global Market, has taken over as CEO and is looking to improve the compliance framework and rebuild its reputation amid the wider scrutiny the exchange has faced over the past year.
Among the measures taken by the exchange’s current CEO are the creation of the first seven-member board of directors after the legal setbacks, and plans to establish a global headquarters.
The impact of these legal challenges extends beyond Zhao, affecting Binance’s operations amid broader market uncertainty and increased price volatility experienced not only by Bitcoin (BTC), but also by the exchange’s native token, BNB.
According to NewsBTC, Binance saw its share of trading volume in the $2 trillion digital asset market fall to 36.6% in September, a sharp decline from 42.7% at the start of the year and a 4-year low.
The decline in market share is particularly pronounced in cash and derivatives trading. Binance’s 27% share of the spot market is the lowest it has been since January 2021, while its share of derivatives trading is at 40.7%, the lowest in four years.
At the time of writing, BNB is trading at $563, down 3% in the last 24 hours, having closed September at $618, the highest level since June.
Featured image from DALL-E, chart from TradingView.com