Can Zhao Changpengs Release Spark the Next Crypto Bull Market

Author: Bitke Editor: Dahei Long
Barring any unforeseen circumstances, former Chinese billionaire Zhao Changpeng is expected to be released from prison on September 29, local time in the United States.
According to the Securities Times, reporters have confirmed this news with the U.S. Federal Bureau of Prisons. The Bureau of Prisons’ official website shows that Zhao Changpeng’s current location has been updated to the Residential Reentry Management (RRM) in Long Beach, California, indicating that he is undergoing preparation and assessment for reentry into society, likely the final step before his release.
Could this soon-to-be-released crypto mogul trigger the next bull market?



Background of Zhao Changpeng: A Crypto Tycoon from Lianyungang
Zhao Changpeng was born in Lianyungang, Jiangsu Province, and is a Chinese-Canadian entrepreneur. A brief timeline of his development and imprisonment is as follows:
In 2017, Zhao Changpeng founded Binance, which quickly became a global cryptocurrency exchange, providing a trading platform for over 150 cryptocurrencies.
By the end of 2021, amid a surge in cryptocurrencies like Bitcoin, Zhao Changpeng ranked as the richest Chinese individual with a fortune of $94.1 billion (approximately 634.8 billion RMB).
In November 2023, the U.S. Department of Justice stated that Binance, the company operating the world’s largest cryptocurrency exchange, admitted to engaging in activities related to money laundering, unlicensed remittances, and violations of sanctions, agreeing to pay approximately $4.3 billion in fines. At the same time, Zhao Changpeng acknowledged his failure to maintain an effective anti-money laundering program and resigned from his position as CEO of Binance, ultimately pleading guilty alongside the company.
In April 2024, a judge in Seattle sentenced Zhao Changpeng to four months in prison for failing to implement an effective anti-money laundering framework, which allowed Binance to become a viable platform for cybercrime and terrorist activities. This sentence was significantly lower than the three-year prison term recommended by prosecutors, but it was still not the outcome his defense attorneys had hoped for, as they appealed for probation. According to Forbes, as of April 2024, Zhao Changpeng still possesses a fortune exceeding $30 billion.
As the former richest Chinese individual, can Zhao Changpeng ignite the next bull market?
As the founder of Binance, Zhao Changpeng’s personal fate is closely tied to the cryptocurrency market. His upcoming release is sure to create waves in the market. To analyze the impact of this event on the cryptocurrency market, several angles need to be considered:
First, Zhao Changpeng’s release signifies a temporary resolution to his personal crisis. This could help restore his positive image among investors and boost confidence in Binance and its ecosystem. As the leader of Binance, Zhao’s return is expected to stabilize the turbulent cryptocurrency market and alleviate concerns regarding the platform’s stability. On the other hand, Zhao holds considerable influence in the cryptocurrency industry, and his return may uplift the morale of the entire sector, attracting more investors.
Market data indicates that during Zhao Changpeng’s imprisonment, Bitcoin fluctuated by over $20,000. In April of this year, when Zhao was incarcerated, Bitcoin reached $71,000 but subsequently experienced significant volatility, even dipping below $50,000. The latest price stands at $63,192.



Second, Binance’s strategic adjustments are also crucial. To address regulatory pressures, Binance may accelerate its global expansion and compliance efforts. This would enhance institutional investors’ confidence and promote the maturation of the cryptocurrency market. With further improvements in regulatory compliance, Binance may expedite the launch of new products and services, providing users with more options and further expanding its market share. In the foreseeable future, Binance may also increase investments in ecosystem development, attracting more projects and developers to build a more prosperous cryptocurrency ecosystem.
From a macroeconomic perspective, the cryptocurrency market is significantly influenced by the broader economic environment. If the global economy improves, it will benefit risk assets, including cryptocurrencies. Regulatory policies in various countries are key factors affecting market trends. Clarity in regulatory policies is conducive to stable market development. Technological innovation in cryptocurrency serves as the core driving force for market advancement. New technological breakthroughs will introduce new growth points for the market.
Of course, Zhao Changpeng’s release may also pose potential risks, such as triggering excessive speculation in the market regarding Binance, leading to significant price volatility in the short term. Additionally, although Binance is actively pursuing compliance, it still faces regulatory risks from around the world, and the competitive landscape in the cryptocurrency market is fierce, with Binance’s competitors potentially seizing the opportunity to expand their market share.
In summary, Zhao Changpeng’s release will have multifaceted impacts on the cryptocurrency market, with both positive aspects and potential risks. In the short term, the uplift in market sentiment may drive up the prices of Binance and its related tokens. In the long term, factors such as Binance’s strategic adjustments, the macroeconomic environment, regulatory policies, and technological innovations will collectively determine the development trends of the cryptocurrency market. Investors should consider these factors comprehensively and be mindful of risk management.