Binance founder CZ moved to halfway house, remains in custody

Changpeng Zhao, the former CEO of Binance, has been transferred from prison to a halfway house at the Residential Reentry Management office in Long Beach, California.

Crypto Twitter is pumping with rumors and speculation that Zhao has been officially released from all custody. Although false, recent federal inmate trackers have been updated to show that Zhao is in a halfway house. 

Zhao remains in custody despite his move and has not been released. RRM Long Beach is a facility designed to help inmates transition back into society as they near the end of their sentences. 

Changpeng Zhao’s sentencing

Zhao, who began serving his sentence in late May for violating U.S. anti-money laundering laws, is scheduled to be released on September 29. 

He pleaded guilty to violating U.S. anti-money laundering laws. Zhao stepped down as CEO of Binance. As part of the legal resolution, Binance was also fined $4.3 billion, with Zhao personally agreeing to pay a $50 million fine.

Zhao remains under strict supervision and is still completing his sentence. This development comes as Zhao faces a new lawsuit filed by crypto traders accusing Binance of enabling money laundering through insufficient regulatory practices.

Zhao, one of the wealthiest figures in crypto, is also barred from managing Binance for three years following a settlement with the U.S. government.