Former Binance CEO still serving sentence

Former Binance CEO Changpeng ‘CZ’ Zhao has been transferred from FCI Lompoc II to the RRM Long Beach halfway house in California, causing confusion among X users who mistakenly believed he had been released.

Despite the change in location, CZ remains incarcerated.

The RRM Long Beach facility, categorized as a “Residential Reentry Management (RRM) field office,” is designed to assist inmates close to release, but does not equate to full release. InmateAID, which is a federal communications provider for inmates, describes this facility as a facility with voluntary compliance requirements rather than a high-security environment, although strict house rules must be followed .

The misinterpretation of CZ’s transfer has been compounded by prior confusion over its release date. Although his sentencing was set for April 30, CZ’s incarceration began later in May, leading to a scheduled release on September 29.

CZ resigned as CEO of Binance in November 2023 and agreed to pay a $50 million fine after pleading guilty to US federal charges, including violating the Bank Secrecy Act.

Binance also pleaded guilty, paying $4.3 billion in fines. Zhao pleaded guilty to violating the US Bank Secrecy Act by prioritizing Binance’s growth over compliance.

As part of a plea agreement, Binance admitted to operating an unlicensed money transmission business and violating the International Emergency Economic Powers Act. The former executive was sentenced to four months in prison in April 2024, and prosecutors had asked for three years.

As he serves the remaining 37 days of his sentence, CZ also faces new legal challenges.

A recent lawsuit, filed on August 16, accuses CZ and Binance of inadequate anti-money laundering (AML) and know-your-customer (KYC) protocols, which allegedly allowed criminals to launder stolen funds through the platform . This additional legal battle adds to the complications surrounding CZ’s current legal situation.

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