Binance founder ‘CZ’ Zhao moved from prison to halfway house.

Former Binance CEO Changpeng Zhao (CZ) has been transferred from FCI Lompoc II prison to the RRM Long Beach halfway house in California. This move led to confusion among X (formerly Twitter) users, who mistakenly believed CZ had been released early. However, he is still serving his sentence.

• CZ moved to RRM Long Beach, a halfway house, not released from custody.
• Confusion arose due to misinterpretation of his transfer as an early release.
• CZ’s sentence is set to end on September 29, 38 days after the expected release.

The RRM Long Beach facility is a Bureau of Prisons-administered unit that helps inmates transition back into society. While CZ is technically out of prison, he remains under strict rules and will continue to serve his sentence there. The initial confusion regarding CZ’s release date stemmed from the fact that many believed he was to be released on August 30, based on his sentencing date. However, he wasn’t imprisoned until late May, meaning his actual release date is September 29.

In addition to serving his sentence, CZ now faces a new lawsuit filed on August 16. Three crypto traders have accused Binance of allowing lax anti-money laundering (AML) and know-your-customer (KYC) regulations, which they claim enabled criminals to launder stolen funds through the exchange.