He is listed on the team's restricted list. So, it's completely legal. In MLB, the restricted list is a contract status where the player is still associated

He is listed on the team's restricted list. So, it's completely legal. In MLB, the restricted list is a contract status where the player is still associated with the team but inactive (and the roster position is freed up to be filled). The player can be traded to another team, become active again, etc. This status can be used when a player has major legal or health issues (in this case, it's uncontrolled bipolar + schizophrenia).