Is CZ out of Prison? Here’s What We Know

On Thursday, the news made the rounds that Binance’s co-founder and ex-CEO Changpeng Zhao (CZ) had been released from jail. Many asked how CZ, who was sentenced to four months in prison on April 30 and began his jail time on June 3, could be released less than three months later. Well, here’s what we know.

Zhao is still in custody but was moved to a new facility on August 22. According to the United States Federal Bureau of Prisons (BOP) record, CZ was listed as an inmate in Long Beach’s Residential Reentry Management (RRM). Before now, he was in the Federal Correctional Institution Lompoc II prison in California.

Is CZ Technically Out?

Sources gathered that the RRM, also known as the “halfway house,” was where inmates nearing their release date were sent. The facility had features that differentiated it from a prison, including using force on inmates and a lower security level.

Also, RRM Long Beach is a BOP-administered facility rather than an actual prison. It is technically a correction center for inmates in preparation for release. However, Zhao’s release date remains imminent. The Binance co-founder is set to be released by September 29.

Another Lawsuit Awaits CZ

While Zhao’s release draws closer, he risks more jail time. A recent class action against Binance and its founder meant that if both parties were found guilty, CZ might return to prison soon.

The August 16 lawsuit filed with the US District Court for the Western District of Washington claimed that Binance was integral to an online scam. The plaintiffs stated that their stolen funds were sent to Binance, making them unrecoverable.

This lawsuit contrasted an earlier report of how Binance helped prevent potential scams. Cointab reported that the leading crypto exchange prevented over $2.4 billion in losses from fraud between January and June.