- Changpeng “CZ” Zhao moved to a reentry facility in Los Angeles 38 days before his scheduled release
- The former Binance CEO was sentenced to four months in prison for failing to maintain an effective Anti-Money Laundering program
- CZ’s transfer suggests preparations for his reintegration, raising questions about his future post-prison
Based on a letter from the U.S. Federal Bureau of Prisons, the former Binance CEO, Changpeng “CZ” Zhao, was relocated 38 days ahead of his scheduled release date to an administrative facility in Los Angeles. This happened after a part of his sentence for not having an effective Anti-Money Laundering program while at the helm of Binance.
Early Transfer to LA Facility Hints at Preparations for CZ’s Reentry
Changpeng “CZ” Zhao still has 38 days left until his supposed release date. Still, prison records indicate authorities have transferred the former Binance CEO to an administrative facility in LA. According to the U.S. Federal Bureau of Prisons, or BOP, as of August 22, Zhao was listed as an inmate at the Residential Reentry Management, or RRM, field office in Long Beach, which helps place federal offenders
It’s not entirely clear why Zhao was transferred months before his release date, which should be September 29. This April, a federal judge sentenced the former Binance CEO to four months in prison after he had pleaded guilty to failing to maintain an effective Anti-Money Laundering program while presiding over the cryptocurrency exchange. He was reported to prison on May 31.
The BOP website stated that RRM Long Beach is “an administrative office that provides oversight to halfway houses located in central and southern California.” The transfer could suggest that authorities were preparing to move Zhao to a residential facility rather than returning him to Lompoc or another prison.
From CEO to Inmate 88087-510
In November 2023, Zhao resigned as CEO of Binance and pleaded guilty to a felony as part of a deal with U.S. authorities. The exchange agreed to pay $4.3 billion for “civil enforcement actions,” and CZ is barred from holding an executive position at any cryptocurrency firm in the future.
Zhao, who was active on social media before surrendering to prison authorities, has not tweeted since May. Before reporting to Lompoc, he suggested he would work on a writing project while incarcerated.
Despite online speculation, there was no evidence to suggest that Zhao was “free” after the transfer. The BOP website listed his release date as September 29.
Conclusion
As Zhao’s release date approaches, his transfer to a reentry facility suggests preparations for his eventual reintegration. However, the restrictions and his imminent release mark a crucial chapter in the life of the former billionaire executive.
