Former Binance CEO Teases New Project Amid Prison Threat

Changpeng “CZ” Zhao, who is set to appear in court on April 30 for his sentencing after pleading guilty to one felony count, has hinted at a new project that does not involve creating new tokens. On March 18, Zhao announced a project focused on education and its connection to cryptocurrency or blockchain technology. He stated that there would be no involvement of new tokens, and he plans to reveal more details in the near future. Previously the CEO of Binance, one of the largest cryptocurrency exchanges globally, CZ stepped down from his position in November 2023 as part of a plea deal with U.S. authorities. This deal required Binance to pay $4.3 billion, and Zhao to plead guilty to a single count related to the failure of maintaining an effective Anti-Money Laundering program at the exchange.

While awaiting his sentencing, Zhao has been out on bail with a bond of $175 million. His legal team has made multiple appeals to the court, seeking permission for him to visit his family in the United Arab Emirates. Originally scheduled for February, the sentencing hearing was rescheduled to April 30. Experts have speculated that the former CEO may face a prison term of 12 to 18 months. In the meantime, Zhao has been less active on social media, primarily sharing neutral messages related to holidays. His recent post on March 18 created a wave of speculation about his upcoming project among his followers, although the exact nature of it remains unclear at this time.

In addition to facing his own legal troubles, Binance, Binance.US, and Zhao are also dealing with a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June 2023. As stated in a court filing on March 5, Binance’s U.S. arm claimed that the regulatory action taken by the SEC had severely impacted them, referring to it as a “near-mortal blow.”