Changpeng Zhao (CZ), the former CEO of cryptocurrency exchange Binance, has been transferred from FCI Lompoc II prison in California to RRM Long Beach, sparking confusion and premature celebrations among some online communities.
Despite claims from excited users on X (formerly Twitter), CZ has yet to be fully released.
According to updated federal inmate records, CZ was transferred to a halfway house that serves as a “residential reengagement management (RRM) field office.” Sometimes called halfway houses, these facilities are designed to help inmates nearing the end of their sentences by providing a structured environment as they transition back into society.
RRM Long Beach is not a traditional prison, but remains under the administration of the Bureau of Prisons. InmateAID, a communications provider for federal prisoners, describes such facilities as having “no level of security other than voluntary compliance,” but residents are required to strictly follow house rules.
CZ’s move was misunderstood by many as an early release, in part due to previous confusion over his expected release date. Some had predicted that he would be released on August 30, based on his April 30 sentence. However, CZ was not incarcerated until the end of May, meaning his sentence will run until September 29, with 38 days remaining as of now.
As CZ’s release looms, he faces a new legal battle. On August 16, three crypto traders filed a lawsuit against CZ and Binance, claiming that the platform’s inadequate anti-money laundering (AML) and know-your-customer (KYC) protocols allowed criminals to launder stolen funds through Binance.
*This is not investment advice.