• Former Binance CEO CZ has been moved from prison to a halfway house called RRM Long Beach, but he is not free yet
• CZ still has 38 days remaining of his sentence and will be released on September 29
• CZ and Binance are facing a new lawsuit from three crypto traders accusing them of lax money laundering regulations that allowed criminals to launder stolen funds
Changpeng Zhao (CZ), founder of cryptocurrency exchange Binance, has been moved from his prison to a halfway house in California. However, this does not mean he has been freed early, despite claims on social media.
CZ Moved to Halfway House, Not Released
Former Binance CEO CZ has been moved from FCI Lompoc II prison to the RRM Long Beach halfway house. This residential reentry facility assists inmates nearing their release date.
Although CZ is now out of prison, RRM Long Beach is still administered by the Bureau of Prisons. This means CZ is still serving his sentence, just in a different type of facility.
Many social media users and crypto firms wrongly assumed this transfer meant CZ had been released early.
Confusion Over CZ’s Release Date
There was previous confusion about when CZ would be released. Many thought it would be August 30th, based on his April 30th sentencing date.
However, CZ was not actually imprisoned until late May. This means he still has 38 days left to serve, putting his release date at September 29th.
New Lawsuit Adds to CZ’s Troubles
While CZ’s prison sentence is almost over, he now faces a new lawsuit to worry about.
Binance and CZ have been accused by three crypto traders of enabling the loss of their funds through weak anti-money laundering (AML) and know-your-customer (KYC) regulations.
The suit alleges Binance’s lax compliance allowed criminals to launder stolen funds through the exchange. This adds to the legal and regulatory pressure facing CZ and Binance worldwide.
