Reports of Binance founder Changpeng Zhao‘s supposed early release on August 22 have created a buzz in the cryptocurrency community. However, official US Bureau of Prisons records confirm that Zhao’s scheduled release date remains September 29, 2024. Contrary to the existing rumors, Zhao transferred from FCI Lompoc II in California to RRM Long Beach, a facility commonly known as a “halfway house.”
Halfway houses are often used to transition prisoners nearing the end of their sentences. These facilities typically rely on voluntary compliance for security measures, leading to confusion. They said the transfer was first posted on the federal inmate tracker, which created false assumptions on social media platforms. Several users on X (previously Twitter, including several crypto companies) praised Zhao’s transfer, thinking it to be an early release, adding more fuel to the speculations regarding its probable influence on the crypto markets.
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Community and Market Response and Prospect
The crypto community reacted positively to the fake news, with some members speculating an upswing in the market once Zhao is released. This sentiment stems from the fact that Zhao has a dominant influence within the ecosystem. More enthusiasts took it to the extent of expecting a bull market due to his return to the crypto scene.
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The excitement holds merit, with analysts viewing Zhao’s transfer to a halfway house as a clear step toward his reintegration into the business world, sparking speculation about his future ventures and their potential market impact.
Zhao’s legal troubles started at the end of April 2024 when he received a four-month prison sentence for flouting anti-money laundering rules. This came after the US SEC filed charges against Binance, a popular cryptocurrency exchange, and its founder. Zhao ultimately pleaded guilty, agreeing to a $4.3 billion settlement and stepping down from his role at Binance. The settlement bars him from managing or interfering in Binance’s operations for three years.
Conclusion
Despite the brief uproar over his alleged early release, Changpeng Zhao’s official release date remains unchanged. However, his transfer to a halfway house and the anticipation of his return has already made waves in the crypto community. As Zhao prepares for life after Binance, the market will be watching closely to see his next move and how it might influence the broader crypto landscape.
Also Read: Binance CEO Changpeng Zhao Sentencing Puts Cryptocurrency Regulation Under Spotlight
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.