Changpeng Zhao, the founder of Binance, became the subject of premature celebration on Crypto X this Thursday as users mistakenly believed he had been released from prison.
In reality, Zhao is still under U.S. government custody and is scheduled to be officially released on September 29, according to the U.S. Bureau of Prisons.
The confusion appears to have stemmed from Zhao’s recent transfer from a minimum-security prison in Southern California to RRM Long Beach, a residential reentry management (RRM) program designed to help inmates nearing the end of their sentences reintegrate into society. These facilities, often referred to as “halfway houses,” allow inmates more freedom but still keep them under government supervision.
Technically, those who claimed Zhao is now out of prison were correct in a limited sense, as he has indeed left the confines of a traditional prison. However, Zhao remains under strict governmental control and is not yet free to move or conduct his affairs as he wishes.
Zhao’s official release will likely see him return to Dubai, where his wife and two children reside. Zhao has been in the United States since November 2023, when he pled guilty to violating U.S. anti-money laundering laws. Following his guilty plea, Zhao was not allowed to return to his family while awaiting sentencing, spending several months in the Pacific Northwest.
Despite his legal troubles, Zhao remains one of the wealthiest figures in the cryptocurrency world, with a net worth last estimated at $47.7 billion. As part of his settlement with the U.S. government, Zhao is banned from operating or managing Binance for three years
During this time, he has indicated plans to focus on education and passive investing. Additionally, RRM Long Beach offers Zhao access to job placement assistance and life skills training as he prepares for his eventual return to society.
