An insight into the life of Changpeng Zhao and the latest news surrounding him is what we aim to provide in this article. With a surge in online interest about Zhao and his recent developments, we delve into the details for our readers.
Binance CEO Admits Guilt
An article by Reuters informs us about the resignation of Changpeng Zhao, also known as CZ, the mastermind behind Binance, the world’s leading cryptocurrency exchange. He stepped down after accepting guilt for breaching US anti-money laundering regulations. The news agency, quoting prosecution attorneys, revealed that Zhao had agreed to a settlement of $4.3 billion in a Seattle court on November 21. The settlement package includes a personal compensation amount of $50 million to resolve the dispute. Prosecutors described this as one of the largest corporate penalties in US history. As part of the settlement, Binance will surrender $2.51 billion after disbursing $1.81 billion over a span of 15 months.
Legal professionals shared with Reuters that this outcome is beneficial for Zhao on a personal front, but it also marks another blow to the cryptocurrency sector, following the conviction of FTX’s Sam Bankman-Fried for fraud earlier this month. They noted that it allows him to retain his wealth and ownership of Binance. Zhao, a Canadian citizen of 44 years, was born in China’s Jiangsu province. As per a Bloomberg report, Zhao’s father, an academic, was sent to the countryside during Mao’s Cultural Revolution, leading to the family relocating to Vancouver when Zhao was twelve. Having pursued computer science, Zhao emerged as a tech-savvy youth and completed his degree from McGill University.
In his early career, Zhao worked in Tokyo and New York, developing trading systems. Bloomberg’s report further tells us that Zhao first dabbled in cryptocurrencies in 2013 during a poker game in Shanghai with investor Ron Cao and BTC China CEO Bobby Lee. During the game, his companions advised him to invest 10% of his wealth in Bitcoin. It is said that Zhao sold his apartment to raise the necessary funds after doing his research. Prior to founding Binance, he held various positions in cryptocurrency startups such as Blockchain.info and OKCoin.
