Rumors start with just a small spark, which is true in Changpeng Zhao’s case. The former CEO of Binance, who is facing a jail term, was ‘set free’ on Thursday, and many crypto users congratulated Zhao on their X profile. Later, it came to light that the release was just a rumor.
Igniting the Spark
A user called Capo posted on his X profile that the former CEO of Binance had been released. Following his thread, many crypto users congratulated CZ Binance. However, this sparked a debate among many, suggesting it could be a pre-release.
While some stated that the original release date is September, considering that he was arrested in May, others argued that since he was charged in April, the release is appropriate, considering the four months of imprisonment. However, the debate soon died out when the news of Zhao’s release was found to be false.
Shifted from Prison to Management Program
Zhao, who has been in jail since May, was shifted on Thursday to RRM Long Beach in California. RRM or residential reentry management offices are field offices, wherein the inmates, nearing the end of their jail sentence will be assisted for their re-entry into society. These offices are nicknamed ‘halfway houses’.
Zhao has only 38 days left to complete his sentence. He intends to use his time at RRM to reflect on his actions and focus on other ventures, such as education and passive investment. Presently, he is banned from operating or managing Binance. After his release, Zhao can be reunited with his family, who are residing in Dubai.
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Another Money-laundering Lawsuit
Changpeng Zhao will have to face another lawsuit right after his release in September. The fresh case, filed in August, alleged that Binance is a key player in a money-laundering scheme that caused financial difficulty for U.S. consumers. The case claimed that hackers stole the cryptocurrencies of many users and later laundered through Binance, with the firm being aware of the scam, thereby violating the RICO statute.
