CZ Not Yet Free, Transferred to Reentry Facility Ahead of September Release

The countdown to Changpeng Zhao’s release from prison has taken an unexpected turn. The crypto mogul has been moved to a reentry facility, raising questions about the timing of his return to the outside world.

Former Binance CEO CZ, who is currently serving a four-month prison sentence for failing to maintain an effective Anti-Money Laundering program, has been transferred to a reentry facility in Long Beach, California. While his official release date is scheduled for September 29, the move suggested that authorities are preparing him for a transition back into society.

While social media buzzed with claims that Binance founder CZ had been released from prison on Thursday, those rumors proved unfounded. The truth, as often happens online, was far from the circulating reports.

According to records with the United States Federal Bureau of Prisons (BOP), Zhao was listed as an inmate of the Residential Reentry Management (RRM) Long Beach field office as of August 22nd. He was previously incarcerated at the Federal Correctional Institution Lompoc in central California.

The RRM Long Beach office provides oversight to halfway houses in central and southern California. It is possible that Zhao will be transferred to a residential facility from this administrative office.

Zhao’s transfer comes after a tumultuous period for the former Binance CEO. In November 2023, he resigned from his position at Binance and pleaded guilty to one felony charge in a settlement with US authorities. Binance agreed to pay a hefty $4.3 billion for “civil regulatory enforcement actions,” and CZ is permanently barred from serving as an executive at any crypto firm.

Binance and its former CEO, CZ, faced a class-action lawsuit brought by three crypto investors. The plaintiffs alleged that Binance’s failure to prevent money laundering enabled thieves to steal their digital assets, leaving them unable to recover their funds.

The lawsuit, filed in the Western District of Washington, Seattle on August 16, claimed that the stolen crypto was laundered through Binance, effectively severing the connection between the investors and their assets. This made it impossible for them to trace or recover the funds.

Zhao, known for his active presence on social media before surrendering to prison officials, has been silent on Twitter since May. Prior to his incarceration, he hinted at working on a writing project while behind bars.

The move to a reentry facility signals that Zhao’s time behind bars is nearing its end. While the details of his transition remain unclear, his release will mark a significant moment for the crypto world, especially as it continues to grapple with regulatory challenges and the fallout from the FTX collapse.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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