Binance founder was transferred to an inmate rehabilitation center a month before the prison term ends

What’s new? The founder and former CEO of the world’s largest centralized crypto exchange (CEX) Binance, Changpeng Zhao, who is serving time in the United States in a money laundering case, has been moved to another facility. According to media reports, he was transferred this week from a prison in California to the RRM Long Beach Rehabilitation Center, where inmates with expiring sentences are prepared for reentry into society.

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What else is known? Against the backdrop of this news, some members of the crypto community mistakenly stated that Zhao has already been released, but in reality, his term expires on September 29. The entrepreneur received a four-month sentence after pleading guilty to Binance’s failure to maintain an adequate anti-money laundering program, which allowed attackers to exploit it.

The exchange itself paid fines totaling $4,3 billion to federal agencies and also agreed to allow independent monitors to oversee compliance.

At the moment, the entrepreneur is still in custody and has restricted movement. He has been in the United States since November last year and after his release, he is likely to return to Dubai, where his wife and two children live. Lawyers had earlier sought permission for him to return to his family pending the announcement of his sentence, but the court responded with a denial.

Less restrictive conditions characterize institutions like RRM Long Beach and provide inmates with a variety of educational programs to help them successfully integrate into society and reduce recidivism.

Despite the agreement with the authorities, which includes the payment of fines, Zhao remains the richest man in the crypto industry. According to the latest data, his fortune is estimated at $47,7 billion.

Also as part of the agreement, Zhao was banned from running Binance for three years. The entrepreneur stated that he intends to use this time to focus on other projects such as education and passive investing. The CEO post is currently held by Richard Teng, who previously served as Binance’s regional manager.

This month, Binance received a new lawsuit alleging money laundering from a group of US investors. It alleges that the exchange helped hackers launder funds stolen from the plaintiffs. The community noted that the plaintiffs are represented by well-known attorneys who have previously participated in high-profile cases against Facebook and Wells Fargo.