Binance Founder CZ Moves to Halfway House: Release Set for September

TLDR:

• Binance founder CZ moved from prison to halfway house, not released
• CZ still has 38 days left to serve, release date September 29
• Confusion arose from misinterpretation of his transfer
• CZ and Binance face new lawsuit over alleged lax AML/KYC practices
• CZ banned from operating Binance for 3 years as part of settlement

Former Binance CEO Changpeng Zhao, known as CZ, has been moved from prison to a halfway house in California, sparking confusion about his release status. The Federal Bureau of Prisons confirms that CZ is now at RRM Long Beach, a residential reentry management facility, after serving part of his sentence at FCI Lompoc II prison.

This transfer led to premature celebrations on social media platforms, with many users mistakenly believing CZ had been released early. However, officials clarify that CZ remains in custody and is not yet free to leave.

JUST IN – CZ Binance is out of prison

The Binance founder has moved to a ‘halfway house’.

His full releases is expected in September. pic.twitter.com/9AMta0aaOO

— Altcoin Daily (@AltcoinDailyio) August 22, 2024

RRM Long Beach is classified as a “halfway house,” designed to help inmates nearing their release date transition back into society. While not a traditional prison, it still imposes strict rules and oversight on residents. CZ’s transfer to this facility is a standard procedure for inmates approaching the end of their sentences.

CZ began serving his four-month sentence in late May 2024 after pleading guilty to violating U.S. anti-money laundering laws. As part of his plea agreement, he stepped down as CEO of Binance and agreed to pay a $50 million fine. Binance itself was fined $4.3 billion in the settlement.

The Bureau of Prisons confirms that CZ’s official release date is September 29, 2024. This means he still has about 38 days left to serve as of August 23. During his time at the halfway house, CZ will have access to job placement assistance and life skills training to prepare for his re-entry into society.

While CZ’s criminal sentence is nearing its end, his legal troubles are not over. Three crypto traders recently filed a lawsuit against CZ and Binance, accusing them of losing funds due to inadequate money laundering regulations.

The suit claims that Binance’s failure to implement effective anti-money laundering (AML) and know-your-customer (KYC) measures allowed criminals to use the platform for covert money laundering.

This new legal challenge comes on top of the restrictions CZ already faces. As part of his settlement with the U.S. government, he is banned from operating or managing Binance for three years. CZ has stated that he plans to use this time to focus on other ventures, including education and passive investing.

Despite these setbacks, CZ remains a significant figure in the cryptocurrency world. Recent estimates place his net worth at around $47.7 billion, making him one of the wealthiest individuals in the crypto industry.

Binance, the company CZ founded, continues to operate under new leadership. Current CEO Richard Teng has pledged to increase the exchange’s focus on regulatory compliance, including plans to hire more staff dedicated to this area.