CZ Binance’s former CEO, Changpeng Zhao, has been transferred from a federal prison in California to a halfway house in Long Beach, resulting in thrills among crypto enthusiasts, but he is still serving his prison sentence.
In a surprising development, former Binance CEO Changpeng Zhao, also known as CZ, has been transferred from a federal prison in California to a halfway house in Long Beach.
This news sparked a wave of excitement among cryptocurrency enthusiasts, with many people believing that he had been released early. Despite being transferred to a new facility, CZ is still serving his sentence. Here’s what’s actually happening.
CZ Binance Leaves Prison—Or Does He?
Rumors have spread online that Zhao has been released from prison, creating thrills in the cryptocurrency community. However, these claims are false. Changpeng Zhao has been transferred from the FCI Lompoc II prison in California to the RRM Long Beach halfway house, but that does not mean he is now free.
The federal prisoner tracker recently updated its records, revealing CZ Binance’s move to the halfway house, creating confusion. However, this halfway house remains part of the Bureau of Prisons system. It serves as a facility for prisoners nearing the end of their sentences to slowly return into society.
While Changpeng will be released from prison, his stay at the halfway house is enforced by strict rules and guidelines. According to the federal prisoner communication service InmateAID, prisoners in such facilities are required to follow the rules on their own, but it is still considered part of their sentence.
Why Was Changpeng Zhao Moved to a Halfway House?
Moving to a halfway house, such as RRM Long Beach, is standard procedure for prisoners nearing the end of their punishment. These facilities help prisoners settle back into society by providing a structured environment to prepare for life after imprisonment.
Changpeng Zhao has about 38 days left to serve, so his move is part of the regular process toward his full release.
RRM Long Beach is classified as a residential return management facility, not a traditional prison. There are no bars or high-security measures, but strict supervision remains. The prisoners must follow the house’s rules and regulations to return to society before their set release date.
CZ was sentenced earlier this year and has been serving time since late May. There was some confusion about his release date, with many believing he’d be free on August 30.
However, his actual imprisonment did not begin until May, making the September 29 release date more accurate. He still has more than a month to go before officially returning his freedom.
Social Media Confusion: Why X (Formerly Twitter) Got It Wrong
The transfer of CZ from prison to the halfway house generated broad theories, particularly on X (formerly known as Twitter). Many users, including some cryptocurrency firms, confused the update as an early release. The excitement was most likely caused by a misunderstanding of what a halfway house is.
Though Zhao is no longer in a high-security prison, he is not completely free. A halfway house represents a period of adjustment, not freedom. His stay there is still part of his punishment, and he is still under the custody of the Bureau of Prisons.
Many thrilled social media users linked the move to CZ initial sentencing date of April 30. This added to the belief that his August 30 release date was accurate. However, because he was not taken into custody until late May, his full release date is September 29.
Changpeng is nearing the end of his sentence at the RRM Long Beach halfway house, but he must still follow strict rules. As he nears his release, he faces legal challenges, including a lawsuit filed against him and Binance for their AML and KYC practices. Despite these obstacles, Binance remains under the Bureau of Prisons’ supervision.
Also Read: Binance CEO CZ Nearly Free From Prison: A Timeline of Events
