CZ Transferred to Reentry Facility, Counting Down to Release Date in Late September

Although CZ still has 38 days left before his prison term ends, the US government has listed the former Binance CEO as an inmate at the Reentry Management Facility (RRM) Long Beach.

On August 22, according to the US Federal Bureau of Prisons (BOP) records, former Binance CEO Changpeng Zhao (CZ) was transferred from FCI Lompoc II in California to the Reentry Management Facility RRM Long Beach in Los Angeles.

This information has led many to misunderstand that CZ was released on August 30 based on the sentence issued on April 30. In fact, CZ began serving his sentence on May 31 and is currently serving his sentence. He will only officially complete his prison term and be completely free on September 29.

However, CZ's transfer to RRM Long Beach marked the beginning of his reintegration after four months in prison. The facility serves as a temporary detention center for inmates in the final stages of their sentences, helping them gradually adapt and return to normal life.

The crypto community is looking forward to the day Changpeng Zhao completes his prison term, even jokingly calling it a "bullish unlock".

As Coin68 reported on November 22, 2023, Zhao announced his resignation as CEO of Binance and agreed to pay a fine of $50 million to the US government, and was banned from participating in Binance operations for three years.

During the sentencing hearing for the former Binance CEO on April 30, CZ was sentenced to four months in prison for negligence in management, allowing money laundering to occur at the cryptocurrency exchange he founded.

The sentence for the former Binance executive is significantly shorter than the three years that federal prosecutors had sought. It is also lower than the 18 months in the settlement with the US Department of Justice.

As for Binance, the exchange reached a settlement to end a lengthy investigation by the US Department of Justice and the US Commodity Futures Trading Commission (CFTC) into the platform. Under the agreement, Binance was charged with three crimes and agreed to pay a record $4.3 billion fine from US authorities.

Shortly after Changpeng Zhao stepped down, Richard Teng, Head of Global Markets, took over as CEO at Binance. Under his leadership, Binance has stepped up regulatory compliance by implementing strict anti-money laundering controls and implementing a strict KYC policy. These efforts have helped Binance protect users from losses of up to $2.4 billion in 2024. Notably, Binance also successfully re-entered the Indian market on August 15 and reached a settlement with the Brazilian SEC in August 2024.

As CZ’s release date approaches and Binance continues to invest in compliance, the two are facing a new legal challenge. On August 16, CZ and Binance were hit with a class-action lawsuit for allegedly assisting cybercriminals in laundering stolen crypto assets, in serious violation of anti-money laundering (AML) regulations and US law.